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Taxes
Student Loan Interest Deduction Calculator
Federal • 2026 • Above-the-line deduction

Student Loan Interest Deduction Calculator

Calculate your 2026 student loan interest tax deduction. See how much you can deduct based on your MAGI and filing status.

Tax Information

Enter your filing status, MAGI, and interest paid.

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Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

Deduction Results

Your student loan interest deduction.

Full Deduction

$2,500

Your MAGI is below the phase-out threshold ($85,000), so you can deduct the full amount.

Phase-Out Limits
Lower Limit:$85,000
Upper Limit:$100,000
Your MAGI:$70,000
✓ Below phase-out threshold
Calculation Breakdown
Interest Paid:$2,500
Interest Base (max $2,500):$2,500
Deduction Amount:$2,500
Estimated Tax Savings
Based on common tax brackets (actual savings depends on your bracket):
22% Bracket
$550
24% Bracket
$600
32% Bracket
$800

Notes & Information

What is the Student Loan Interest Deduction?

The student loan interest deduction is a federal tax benefit that allows you to deduct up to $2,500 of the interest you paid on qualified higher education loans. Because it is an adjustment to income (an "above-the-line" deduction), you do not need to itemize your deductions to claim it.

To qualify, you must meet the following criteria:

  • You paid interest on a qualified student loan in the 2026 tax year.
  • You are legally obligated to pay the interest.
  • Your filing status is not Married Filing Separately.
  • You (and your spouse, if filing jointly) cannot be claimed as a dependent on someone else's return.
  • The loan was used solely for qualified higher education expenses (tuition, fees, room, board, books, supplies, equipment).

2026 Income Limits & Phase-outs

The amount you can deduct depends on your Modified Adjusted Gross Income (MAGI). If your income exceeds certain thresholds, the deduction is "phased out" (reduced) until it disappears completely.

Filing StatusFull Deduction (MAGI)Partial Deduction (MAGI)No Deduction (MAGI)
Single / Head of HouseholdUnder $85,000$85,000 - $100,000Over $100,000
Married Filing JointlyUnder $175,000$175,000 - $205,000Over $205,000
Married Filing SeparatelyN/AN/AIneligible

How to Find Your Interest Paid (Form 1098-E)

By early 2027, your loan servicer will send you Form 1098-E (Student Loan Interest Statement) if you paid at least $600 in interest. If you paid less than $600, you can still claim the deduction, but you will need to log into your servicer's portal to find the exact amount.

Note: The deduction includes both required payments and any voluntary interest payments you made during the year. If you made extra payments that included interest, those interest portions are deductible.

Where to find it:

  • Form 1098-E from your loan servicer (if you paid $600+ in interest)
  • Your loan servicer's online account portal
  • Your monthly loan statements (sum up interest paid throughout the year)
  • Your loan servicer's annual tax summary

Understanding Modified Adjusted Gross Income (MAGI)

MAGI is your Adjusted Gross Income (AGI) with certain deductions added back. For the student loan interest deduction, MAGI typically includes:

  • Your AGI from Form 1040 (line 11)
  • Any foreign earned income exclusion
  • Any foreign housing exclusion or deduction
  • Any exclusion of income from Puerto Rico or American Samoa

For most taxpayers, MAGI is the same as AGI. If you're unsure, use your AGI as an estimate—the calculator will still give you a good approximation of your deduction.

How the Phase-Out Works

If your MAGI falls within the phase-out range, your deduction is reduced proportionally:

Example for Single Filer: If your MAGI is $92,500 (middle of the $85,000-$100,000 range) and you paid $2,500 in interest:

  • Phase-out range: $15,000 ($100,000 - $85,000)
  • Your position in range: $7,500 ($92,500 - $85,000)
  • Reduction fraction: 50% ($7,500 / $15,000)
  • Deduction: $1,250 ($2,500 × 50%)

The closer your MAGI is to the upper limit, the less you can deduct. Once you exceed the upper limit, the deduction is completely eliminated.

Qualified Student Loans

Not all loans qualify for this deduction. The loan must meet these requirements:

  • Used for Education: The loan must have been used solely to pay for qualified higher education expenses.
  • Eligible Institution: The school must be an eligible educational institution (most accredited colleges and universities).
  • Qualified Expenses: Tuition, fees, room, board, books, supplies, and equipment required for enrollment.
  • Loan Types: Both federal and private student loans qualify, as long as they meet the above criteria.

What doesn't qualify: Loans from relatives, loans where you're not legally obligated to pay, or loans used for non-educational purposes.

Federal vs. State Deduction

The federal Student Loan Interest Deduction is the same for all states—the phase-out limits and maximum deduction ($2,500) are identical regardless of where you live.

State-Specific Rules: Some states offer additional state-level deductions or credits for student loan interest. For example:

  • Massachusetts: Offers a separate state deduction for undergraduate student loan interest (unlimited amount).
  • Most States: Don't have a separate state deduction, but the federal deduction may reduce your state taxable income if your state uses federal AGI as a starting point.
  • States Without Income Tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't have state income tax, so there's no state deduction to consider.

Important: This calculator focuses on the federal deduction, which is the most significant tax benefit. Check with your state's tax authority or a tax professional for state-specific rules.

Tax Savings Examples

Here are realistic scenarios showing how the deduction works:

  • Scenario 1 - Full Deduction: Single filer, MAGI $70,000, interest paid $2,500. Deduction: $2,500. Tax savings (22% bracket): $550.
  • Scenario 2 - Partial Deduction: Single filer, MAGI $92,500, interest paid $2,500. Deduction: $1,250. Tax savings (22% bracket): $275.
  • Scenario 3 - No Deduction: Single filer, MAGI $105,000, interest paid $2,500. Deduction: $0. No tax savings.
  • Scenario 4 - Married Joint: Married filing jointly, MAGI $190,000, interest paid $2,500. Deduction: $1,000. Tax savings (24% bracket): $240.

Tips to Maximize Your Deduction

Use these strategies to get the most out of this deduction:

  • Track All Interest: Keep records of all interest payments, including voluntary payments and extra principal payments that included interest.
  • Know Your MAGI: If you're close to the phase-out limit, consider strategies to reduce your MAGI (e.g., increasing retirement contributions).
  • File Jointly if Married: Married Filing Separately makes you ineligible. Filing jointly gives you a much higher phase-out threshold ($175,000-$205,000 vs. $0).
  • Claim Every Year: There's no limit on how many years you can claim this deduction, as long as you're paying interest and meet the income requirements.
  • Don't Forget Voluntary Payments: Interest paid on voluntary or extra payments counts toward your deduction.

Related Tools

•[Tax Refund Estimator](/us/taxes/tax-refund-estimator)
•[Standard vs Itemized Deductions](/us/taxes/standard-vs-itemized-deductions)

FAQ (11)

Can I deduct interest on private student loans?

Yes. As long as the loan was used solely for qualified higher education expenses (tuition, room, board, books) at an eligible institution, the interest is deductible regardless of whether the lender is the government or a private bank. The key is that the loan must have been used for qualified education expenses.

What if my parents paid the interest?

If your parents pay the interest on a loan for which you are legally liable, the IRS treats it as if they gave you the money and you paid the interest. You can claim the deduction, provided you aren't their dependent. However, if they claim you as a dependent, they cannot claim the deduction either.

Is there a limit on how many years I can claim this?

No. Unlike some education credits, there is no limit on how many years you can claim the student loan interest deduction. As long as you are paying interest on a qualified loan and meet the income requirements, you can claim it every year. This makes it particularly valuable for borrowers with long repayment terms.

Do I need to itemize to claim this deduction?

No. The student loan interest deduction is an 'above-the-line' deduction (adjustment to income), which means you can claim it even if you take the standard deduction. You don't need to itemize your deductions on Schedule A to benefit from this deduction.

What if I paid less than $600 in interest?

You can still claim the deduction even if you paid less than $600. Loan servicers are only required to send Form 1098-E if you paid $600 or more, but you can still deduct smaller amounts. You'll need to track your interest payments yourself by checking your loan statements or online account.

Can I deduct interest if I'm still in school?

Yes, as long as you're making payments and paying interest. Many students defer payments while in school, but if you choose to make payments (or if your loan accrues interest that you pay), that interest is deductible. However, if payments are deferred and no interest is being paid, there's nothing to deduct.

What's the difference between MAGI and AGI?

For most taxpayers, Modified Adjusted Gross Income (MAGI) is the same as Adjusted Gross Income (AGI). MAGI adds back certain deductions like foreign earned income exclusions. If you don't have these special situations, you can use your AGI from Form 1040 (line 11) as your MAGI for this calculation.

Can I deduct interest on parent PLUS loans?

If you are the parent who took out the PLUS loan and you are legally obligated to repay it, you can deduct the interest you pay, subject to the same income limits. However, if your child is legally obligated to repay the loan, they can claim the deduction (if they meet the other requirements).

What if I refinanced my student loans?

If you refinanced your student loans into a new loan that was used to pay off the original qualified education loan, the interest on the refinanced loan is still deductible. The key is that the original loan must have been used for qualified education expenses, and the refinanced loan must be used solely to pay off that original loan.

How does this deduction affect my state taxes?

The federal Student Loan Interest Deduction is the same for all states. However, some states (like Massachusetts) offer additional state-specific deductions for student loan interest. Most states don't have a separate state deduction, but you should check your state's tax rules. The federal deduction reduces your federal taxable income, which may also reduce your state taxable income if your state uses federal AGI as a starting point.

Is the federal deduction the same in all states?

Yes. The federal Student Loan Interest Deduction is identical for all 50 states and DC. The phase-out limits ($85,000-$100,000 for single filers, $175,000-$205,000 for joint filers) and the $2,500 maximum deduction are the same regardless of where you live. However, some states may offer additional state-level deductions or credits.