Most closing costs, like title insurance, homeowner’s insurance, and inspection fees, are not tax deductible. But there are a few exceptions.

  • Mortgage interest: You can deduct any mortgage interest you paid at closing, as well as throughout the life of the loan.
  • Real estate taxes: Property taxes you pay at closing are tax deductible, as a part of the SALT (state and local tax) deduction.
  • Mortgage points: If you meet certain conditions, you can deduct mortgage points you paid at closing.

While it’s true that other closing costs are not immediately tax deductible, you can add them to your cost basis for the property. This could help to reduce potential capital gains tax you may owe when you sell the property.

Buying or selling property can impact your taxes in many ways. Don’t be caught off guard, and don’t miss a single tax benefit you’re due. Book your appointment to talk taxes with the pros today.

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Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 28, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.