Every Tax Deduction Landlords Can Claim in 2026
Rental property owners can deduct a wide range of expenses — but many landlords miss deductions because they don't track expenses properly or don't know what qualifies. This guide covers every deduction available on Schedule E.
Mortgage Interest Deduction
You can deduct the interest portion of your mortgage payments on rental properties. This is typically your largest deduction in the early years of a mortgage when most of each payment goes toward interest.
- Only interest is deductible, not principal payments
- Track with your annual 1098 form from your lender
- Applies to purchase mortgages and refinances on rental properties
Depreciation (27.5 Years)
The IRS allows you to depreciate the cost of rental buildings (not land) over 27.5 years using straight-line depreciation. This is a paper deduction — you don't actually spend money but still reduce your taxable income.
- Depreciate the building cost, not the land value
- Start depreciating when the property is placed in service
- Keep records of the cost basis (purchase price minus land value)
- Cost segregation studies can accelerate depreciation on certain components
Repairs and Maintenance
Ordinary and necessary repairs that keep your property in good condition are fully deductible in the year they're incurred. Improvements that add value or extend the property's life must be capitalized and depreciated.
- Repairs (deductible now): fixing a leak, repainting, replacing a broken window
- Improvements (must depreciate): new roof, kitchen renovation, adding a room
- The IRS safe harbor allows deducting improvements under $2,500 per item
Insurance Premiums
Landlord insurance, liability insurance, flood insurance, and umbrella policies are all deductible for rental properties.
- Deduct the full annual premium for each rental property
- If a policy covers both personal and rental use, only deduct the rental portion
- Workers' comp for property employees is also deductible
Property Taxes
State and local property taxes on rental properties are fully deductible on Schedule E. Unlike your personal residence (limited to $10,000 SALT cap), rental property taxes have no cap.
- No SALT cap limit on rental property taxes
- Deduct in the year paid, regardless of the tax year they cover
- Track with your annual property tax statements
Travel and Mileage
Travel to and from your rental properties for management, maintenance, or rent collection is deductible. Use either actual expenses or the standard mileage rate.
- 2026 standard mileage rate applies per IRS guidance
- Keep a mileage log with date, destination, purpose, and miles
- Long-distance travel (flights, hotels) deductible if primary purpose is rental management
- Local trips to hardware stores for repair supplies count
Professional Services
Fees paid to attorneys, accountants, property managers, and other professionals for rental-related services are deductible.
- CPA fees for tax preparation (rental portion)
- Attorney fees for lease review or eviction proceedings
- Property management fees (typically 8-12% of rent)
- Real estate agent commissions for finding tenants
Checklist
- Mortgage interest (Form 1098)
- Depreciation (27.5-year straight-line)
- Repairs and maintenance (keep all receipts)
- Insurance premiums (landlord, liability, flood, umbrella)
- Property taxes (no SALT cap for rentals)
- Utilities paid by landlord
- Advertising and tenant screening costs
- Travel and mileage to/from properties
- Professional fees (CPA, attorney, property manager)
- HOA fees and condo association dues
- Pest control and lawn care
- Cleaning and turnover costs between tenants
- Office supplies and software (like PAMKIT)