Paying off student loans? Deduct up to $2,500 in interest on your 2026 return, but watch the income limits that could cut it off early

Student loan borrowers may get a valuable tax break in 2026. The IRS still allows eligible taxpayers to deduct up to $2,500 in student loan interest from income. But the full benefit is not available to everyone. As income rises, the deduction gradually shrinks and can disappear once certain limits are reached.