United States · Federal income tax
Student loan interest deduction.
See how much of your student loan interest you can deduct for 2025, how the income phaseout trims it, and roughly what it saves you in tax.
You can deduct the lesser of $2,500 or the interest you paid. For 2025 it phases out between $85,000 and $100,000 of modified AGI ($170,000 to $200,000 if married filing jointly) and is not available if married filing separately.
Your numbers
Your estimate
How the deduction is figured
The deduction is the smaller of your interest paid or $2,500. If your modified AGI (MAGI) is inside the phaseout range, that amount is cut by the fraction (MAGI − lower limit) ÷ (upper limit − lower limit). At or above the upper limit it is zero. It is an adjustment to income, so you do not need to itemize.
Formula: deduction = min(interest, $2,500) × (1 − phaseout fraction). Tax saved = deduction × your marginal rate.
Worked example
Single, $2,500 of interest, MAGI $92,500, 22% bracket. Fraction = ($92,500 − $85,000) ÷ $15,000 = 0.5. Deduction = $2,500 × (1 − 0.5) = $1,250. Tax saved ≈ $1,250 × 22% = $275.
2025 limits used
- Single, head of household, qualifying surviving spouse: phaseout $85,000 to $100,000.
- Married filing jointly: phaseout $170,000 to $200,000.
- Married filing separately: not eligible.
The IRS worksheet rounds the fraction to at least three decimals; this page does not round it, so results can differ from the worksheet by a few dollars. It does not test whether your loan is a qualified student loan, whether you can be claimed as a dependent, or the special MAGI rules for foreign income and Puerto Rico (see Worksheet 4-1 in Publication 970).
Official sources: IRS Topic 456, Student loan interest deduction and IRS Publication 970, Tax Benefits for Education. Figures are for tax year 2025, verified September 30, 2026. For 2026 returns, check IRS Publication 970 when published; this page will not guess 2026 thresholds.
Frequently asked questions
How much student loan interest can I deduct?
Up to $2,500 per return, or the interest you actually paid if that is less, before the income phaseout.
Do I have to itemize?
No. It is an adjustment to income, so you can take it with the standard deduction.
Can I claim it if I am married filing separately?
No. The IRS says your filing status cannot be married filing separately.
What if my interest was paid by someone else or I paid voluntarily early?
The IRS counts required and voluntarily prepaid interest you paid on a loan you are legally obligated to repay. Check Publication 970 for other situations.
Estimate only
This page is educational and is not tax advice. Confirm with your return instructions or a tax professional.