How can home loan interest be deducted from taxes?
Last updated: 3 Aug 2025
464 Views
Although a home is one of the dreams everyone desires, just thinking about the expenses can be overwhelming. However, a home, which many people think will only increase their burden, actually has the advantage of reducing expenses. Interest from a home loan can be used as a tax deduction for your annual tax year.
__________________________________________
How is home loan interest tax deductible?
According to the Revenue Code, home loan interest or interest from a loan to purchase or build a home can be deducted from personal income tax, up to a maximum of 100,000 baht. The following principles and conditions apply:
1. The loan must be from a domestic financial institution.
2. The loan must be for a home or building on your own land, or a condominium.
3. The home must be used as collateral for the loan.
4. You must reside in the home you're applying for that year, but you don't need to live there for the full year. This means... You can immediately claim the tax deduction when you apply for a loan.
The evidence and documents required to claim the home loan interest deduction include a copy of the loan agreement and a certificate of interest payment from the lender from whom you mortgaged the home.
__________________________________________
Can joint home loans be used for tax deductions?
Since a home is a high-value asset, joint home loan applications are often required to ensure that your financial status passes the bank's assessment before approving the loan. However, even if you apply for a joint home loan, you can still claim the tax deduction, but only if the interest is split equally, but the total amount cannot exceed 100,000 baht. For example, if a husband and wife jointly apply for a home loan and pay 150,000 baht in annual interest, they will only be able to deduct up to 100,000 baht, and the amount must be split equally, with each person receiving a deduction of 50,000 baht.
__________________________________________
Can I claim the tax deduction if I own more than one home?
Many people may believe that the home loan interest deduction applies only to a single home. However, in reality, loans for more than one residence can still be deducted. All home loan interest deductions are available, but the total amount must not exceed 100,000 baht. For example, if you take out a loan for three homes and the total annual interest on the home loan is 200,000 baht, you can only deduct 100,000 baht.
Purchasing a home for yourself and your family can significantly improve your quality of life, with careful financial planning. At the same time, it can help you plan your taxes correctly and efficiently. Therefore, before deciding to purchase a home or condominium, it's important to carefully consider your financial situation and your family's annual tax liability. This will help you achieve your dream home and manage your finances more effectively.
__________________________________________
Thank you for this valuable information from REIC.
__________________________________________
How is home loan interest tax deductible?
According to the Revenue Code, home loan interest or interest from a loan to purchase or build a home can be deducted from personal income tax, up to a maximum of 100,000 baht. The following principles and conditions apply:
1. The loan must be from a domestic financial institution.
2. The loan must be for a home or building on your own land, or a condominium.
3. The home must be used as collateral for the loan.
4. You must reside in the home you're applying for that year, but you don't need to live there for the full year. This means... You can immediately claim the tax deduction when you apply for a loan.
The evidence and documents required to claim the home loan interest deduction include a copy of the loan agreement and a certificate of interest payment from the lender from whom you mortgaged the home.
__________________________________________
Can joint home loans be used for tax deductions?
Since a home is a high-value asset, joint home loan applications are often required to ensure that your financial status passes the bank's assessment before approving the loan. However, even if you apply for a joint home loan, you can still claim the tax deduction, but only if the interest is split equally, but the total amount cannot exceed 100,000 baht. For example, if a husband and wife jointly apply for a home loan and pay 150,000 baht in annual interest, they will only be able to deduct up to 100,000 baht, and the amount must be split equally, with each person receiving a deduction of 50,000 baht.
__________________________________________
Can I claim the tax deduction if I own more than one home?
Many people may believe that the home loan interest deduction applies only to a single home. However, in reality, loans for more than one residence can still be deducted. All home loan interest deductions are available, but the total amount must not exceed 100,000 baht. For example, if you take out a loan for three homes and the total annual interest on the home loan is 200,000 baht, you can only deduct 100,000 baht.
Purchasing a home for yourself and your family can significantly improve your quality of life, with careful financial planning. At the same time, it can help you plan your taxes correctly and efficiently. Therefore, before deciding to purchase a home or condominium, it's important to carefully consider your financial situation and your family's annual tax liability. This will help you achieve your dream home and manage your finances more effectively.
__________________________________________
Thank you for this valuable information from REIC.
Related Content
10 Sept 2025
9 Sept 2025
