Student loan interest deduction calculator
Enter the interest from your Form 1098-E and your income. See what you can deduct and the tax it saves.
- Up to $2,500 of interest a year, federal or private loans.
- No need to itemize: it's on Schedule 1, with the standard deduction.
- Shrinks above $85,000 of income ($175,000 joint for 2026).
How the student loan interest deduction works
Interest you pay on a student loan comes off your income, up to $2,500 a year. You claim it on Schedule 1 of Form 1040, so it works with the standard deduction; you don't need to itemize.
Your loan servicer sends Form 1098-E with the interest you paid. The deduction lowers your taxable income, so what it saves depends on your tax bracket: $2,500 saves $300 in the 12% bracket and $550 in the 22% bracket.
Source: Internal Revenue Code §221; IRS Rev. Proc. 2024-40 (2025 limits) and IRS Rev. Proc. 2025-32 (2026 limits); IRS Publication 970.
| The loan | Taken out only to pay college, graduate or trade school costs for you, your spouse or your dependent, while the student was enrolled at least half time. Federal and private loans count, and refinanced loans count if the new loan only paid off student loans. |
|---|---|
| You | Legally required to pay the loan, not claimed as anyone's dependent, and not married filing separately. If someone else pays interest on your loan, you're treated as paying it. |
| Doesn't count | Loans from a parent, grandparent, child, sibling or spouse, or from an employer plan; credit card debt, unless the card was used only for school costs; and interest your employer paid tax-free for you. |
| Yearly limit | $2,500 of interest per return, even if both spouses have loans. |
| Income limit, 2026 | Shrinks from $85,000 to $100,000 of modified adjusted gross income ($175,000 to $205,000 joint). A qualifying surviving spouse uses the $85,000 range. |
| Income limit, 2025 | $85,000 to $100,000 ($170,000 to $200,000 joint). |
Questions people ask
How much student loan interest can I deduct?
Up to $2,500 of interest a year on a qualified student loan, federal or private. It comes off your income on Schedule 1 (Form 1040), so you get it even if you take the standard deduction.
What is the income limit for the student loan interest deduction?
For 2026 the deduction shrinks when your modified adjusted gross income is between $85,000 and $100,000, or between $175,000 and $205,000 on a joint return, and is gone above that. For 2025 the joint range is $170,000 to $200,000.
Who can't take the student loan interest deduction?
Married couples filing separately, anyone claimed as a dependent on someone else's return, and anyone who isn't legally required to pay the loan. A parent who pays a child's loan in the child's name can't deduct that interest, but the child can, as long as nobody claims the child as a dependent.
Where do I find how much interest I paid?
Box 1 of Form 1098-E. Servicers send one when you paid $600 or more in interest. If you paid less, you can still deduct it; the amount is on your servicer's website.
Did the 2025 tax law change the student loan interest deduction?
No, the $2,500 limit and the rules stayed the same. The law did make permanent the rule that an employer can give you up to $5,250 a year of education help tax-free, including student loan payments (the limit rises with inflation from 2027). Interest your employer paid that way can't also be deducted.