These Tax Breaks Might Make Buying a Home Worth It

Table of Contents

1. Do Homeowners Really Get Tax Breaks?
2. 7 Common Tax Benefits You Should Know
3. What’s Different in Kansas and Missouri?
4. Do You Need to Itemize to Claim These?
5. Bonus Resources for KC Homeowners
6. Summary: Maximize What You’re Already Paying For

Do Homeowners Really Get Tax Breaks?

Yes—and they can be major. Buying a home in Kansas City opens the door to some meaningful tax benefits, but many people overlook them. Most tax perks go to homeowners who itemize deductions (rather than taking the standard deduction), but even if you don’t itemize yet, this guide shows you where savings may be hiding.

7 Common Tax Benefits You Should Know

Let’s break them down:

1. Mortgage Interest Deduction

   You may be able to deduct interest on up to $750,000 of mortgage debt (or $375,000 if married filing separately). This limit is scheduled to shift in 2025.

2. Home Equity Loan Interest Deduction

   If you used a home equity loan or HELOC to buy, build, or improve your home, the interest could be deductible.

3. Property Tax Deduction

   You can deduct state + local property taxes up to $10,000 per year ($5,000 if married filing separately). This includes your real estate taxes.

4. Discount Points

   If you paid discount points to lower your mortgage rate, you might be able to deduct those costs the year you paid them.

5. Home Office Deduction

   If you’re self-employed and use part of your home exclusively and regularly for business, you could qualify.

6. Medically Necessary Home Improvements

   Ramps, wider doors, or other medically necessary changes may qualify if costs exceed 7.5% of your adjusted gross income.

7. Energy Efficiency Credits

   The IRS offers tax credits for certain upgrades—like solar panels, new windows, or insulation.

What’s Different in Kansas and Missouri?

While these benefits apply federally, how you claim them (and how your local taxes work) varies by state and county.

Kansas (e.g. Johnson County):

• Often has higher property values and assessments
• Homestead Refund may be available for lower-income homeowners

Missouri (e.g. Jackson County):

• Tax bills include personal property (cars, boats, RVs)
• You’ll typically receive two separate tax bills: real estate + personal property
• Seniors and certain disabled individuals may qualify for the Missouri Property Tax Credit

💡 Pro Tip: Use your county’s online calculator to estimate your total tax burden.

Do You Need to Itemize to Claim These?

Usually, yes. The standard deduction for 2024 is $14,600 for individuals and $29,200 for married couples. You’d need your combined deductions (mortgage interest, property taxes, etc.) to exceed that to make itemizing worth it.

But! Even if you take the standard deduction, you might still qualify for:

• Energy efficiency credits (not deductions)
• The Missouri or Kansas property tax refund for qualifying households

You don’t need to be a tax pro to make the most of your KC homeownership benefits—but you do need to be informed. Most deductions go unclaimed because no one walks you through the steps.

Ask your CPA what you qualify for.

CAN WE DO THIS?

And if you’re not sure what even applies to your home—book a free consult with our team and we’ll help you sort it all out.

Hey, I’m Kyle Talbot—Kansas City real estate agent, content creator, and team lead of Moving to KC the #1 relocation-focused real estate team in Kansas City. We help people relocating to Kansas City—as well as local buyers and sellers—navigate the KC housing market with ease.