What you should know about first home tax deductions
Last updated: 3 Aug 2025
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Managing your taxes well is one way to manage your finances more effectively, allowing you to have more money to spend and save more efficiently. While we all have a stable income that meets the tax threshold, we all want to buy our dream home. Buying your first home also helps us manage our personal income tax better, as we can qualify for tax deductions when buying a first home. Therefore, to plan your taxes and manage your personal expenses as efficiently as possible and maximize your benefits, before deciding to take out a home loan and utilize the first home tax deduction, here are some important things you should know and understand:
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1. First home loan tax deductions of up to 100,000 baht
To use the first home tax deduction, only the interest on your home loan, excluding the principal, is deducted based on the amount paid, up to a maximum of 100,000 baht. For example, if you pay 5,000 baht per month in interest on your home loan, that would amount to 60,000 baht in interest per year, and you can use the full 60,000 baht in tax deductions. However, if you take out a home loan, And if you have to pay 12,000 baht in interest per month, that's 144,000 baht in total interest per year. We can't deduct the entire amount from our taxes, but can only deduct 100,000 baht, according to the maximum conditions stipulated by law.
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2. Joint home loans can also be used to deduct the first home tax.
Many people who apply for a home loan don't apply alone, but choose to apply for a joint home loan to increase their chances of approval and obtain a higher credit limit. When applying for a joint home loan, the question often arises as to whether the first home tax deduction can be applied to both the borrower and the co-borrower. However, there is a slight additional condition: both borrowers must share the deduction equally and the combined amount must not exceed 100,000 baht. For example, if siblings with the same surname apply for a joint home loan, With 144,000 baht in home loan interest payments throughout the year, each person must share the tax deduction, with 50,000 baht per person, so the total amount cannot exceed 100,000 baht.
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3. You can also use the first home loan deduction if you own multiple homes.
In reality, the first home loan deduction is designed to help potential homebuyers make the decision to purchase a home more easily and maximize their tax benefits. However, in principle, even if you don't own a single home, but have multiple mortgages, you can still use the home loan interest deduction. However, it will still not exceed the maximum limit of 100,000 baht. For example, Mr. Daeng has two home loans: 60,000 baht in annual interest for the first home and 80,000 baht for the second. Mr. Daeng's total annual interest payments are 140,000 baht, so he can only use the 100,000 baht tax deduction.
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4. Home loan interest must come from a legally stipulated source.
The Revenue Department stipulates that home loan interest that can be used for tax deductions must be from borrowed funds from domestic businesses as required by law, such as banks, life insurance companies, cooperatives, and employers with regulations regarding funds allocated for employee welfare. Therefore, when applying for a home loan to qualify for tax deductions, it's important to carefully examine the source of the loan to ensure its legality.
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Once you've decided to take out a home loan, the interest on your home loan is unavoidable. However, you can utilize this tax deduction to maximize your financial management. Understanding the details of the first-home tax deduction will help you better manage your finances and taxes, ensure accurate tax filing, and avoid missing out on opportunities to maximize your financial and expense management.
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Thank you for the great information from REIC.
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1. First home loan tax deductions of up to 100,000 baht
To use the first home tax deduction, only the interest on your home loan, excluding the principal, is deducted based on the amount paid, up to a maximum of 100,000 baht. For example, if you pay 5,000 baht per month in interest on your home loan, that would amount to 60,000 baht in interest per year, and you can use the full 60,000 baht in tax deductions. However, if you take out a home loan, And if you have to pay 12,000 baht in interest per month, that's 144,000 baht in total interest per year. We can't deduct the entire amount from our taxes, but can only deduct 100,000 baht, according to the maximum conditions stipulated by law.
__________________________________________
2. Joint home loans can also be used to deduct the first home tax.
Many people who apply for a home loan don't apply alone, but choose to apply for a joint home loan to increase their chances of approval and obtain a higher credit limit. When applying for a joint home loan, the question often arises as to whether the first home tax deduction can be applied to both the borrower and the co-borrower. However, there is a slight additional condition: both borrowers must share the deduction equally and the combined amount must not exceed 100,000 baht. For example, if siblings with the same surname apply for a joint home loan, With 144,000 baht in home loan interest payments throughout the year, each person must share the tax deduction, with 50,000 baht per person, so the total amount cannot exceed 100,000 baht.
__________________________________________
3. You can also use the first home loan deduction if you own multiple homes.
In reality, the first home loan deduction is designed to help potential homebuyers make the decision to purchase a home more easily and maximize their tax benefits. However, in principle, even if you don't own a single home, but have multiple mortgages, you can still use the home loan interest deduction. However, it will still not exceed the maximum limit of 100,000 baht. For example, Mr. Daeng has two home loans: 60,000 baht in annual interest for the first home and 80,000 baht for the second. Mr. Daeng's total annual interest payments are 140,000 baht, so he can only use the 100,000 baht tax deduction.
__________________________________________
4. Home loan interest must come from a legally stipulated source.
The Revenue Department stipulates that home loan interest that can be used for tax deductions must be from borrowed funds from domestic businesses as required by law, such as banks, life insurance companies, cooperatives, and employers with regulations regarding funds allocated for employee welfare. Therefore, when applying for a home loan to qualify for tax deductions, it's important to carefully examine the source of the loan to ensure its legality.
__________________________________________
Once you've decided to take out a home loan, the interest on your home loan is unavoidable. However, you can utilize this tax deduction to maximize your financial management. Understanding the details of the first-home tax deduction will help you better manage your finances and taxes, ensure accurate tax filing, and avoid missing out on opportunities to maximize your financial and expense management.
__________________________________________
Thank you for the great information from REIC.
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