Permanent · no sunset Updated 2026-08-07

Student Loan Interest Deduction Calculator

You can deduct up to $2,500 of student loan interest for 2026, and you don’t have to itemize to get it. The catch is the phase-out. Above $85,000 of modified AGI the cap starts shrinking, and by $100,000 it’s gone.

Built and figure-checked by Michal, Independent developer. Not a CPA or tax adviser.

Filing status

Modified AGI

Interest paid

Tax bracket

Claimed as dependent

Your tax savings

$367/yr

From a $1,667 deduction, not $1,667 off your bill

Interest paid$2,500

Statutory cap$2,500

Allowed deduction$1,667

Bracket22%

Modified AGI sits inside the band, so the cap shrinks in proportion to how far in it is.

A deduction lowers taxable income. It is worth its size times your rate.

Estimate only

How this estimate is built ›

The raise that costs you twice

Inside the band, an extra dollar of income hits you twice. It gets taxed, and it also destroys part of the deduction that was shielding your other income.

1.A single filer loses $166.67 of deduction per extra $1,000 of modified AGI

2.That adds $36.67 of tax on top of the 22% already due

3.So the real marginal rate inside the band is 25.67%, not 22%

Joint filers spread the same $2,500 across a band twice as wide, so the bite is gentler. They lose $83.33 per thousand and face a real rate of 23.83%. Put another way, every $6 of extra income costs a single filer a dollar of deduction. On a joint return it takes $12.

These rates are our own arithmetic on the proportional reduction in 26 U.S.C. 221(b)(2)(B). The IRS doesn’t publish them.

Every step of the phase-out band

The revenue procedure prints the two endpoints of each band and stops there. Here is every step in between. Scroll the table, or use the calculator above if you just want your number.

Modified AGI	Deduction allowed	Tax saved at 22%
$85,000	$2,500.00	$550.00
$85,500	$2,416.67	$531.67
$86,000	$2,333.33	$513.33
$86,500	$2,250.00	$495.00
$87,000	$2,166.67	$476.67
$87,500	$2,083.33	$458.33
$88,000	$2,000.00	$440.00
$88,500	$1,916.67	$421.67
$89,000	$1,833.33	$403.33
$89,500	$1,750.00	$385.00
$90,000	$1,666.67	$366.67
$90,500	$1,583.33	$348.33
$91,000	$1,500.00	$330.00
$91,500	$1,416.67	$311.67
$92,000	$1,333.33	$293.33
$92,500	$1,250.00	$275.00
$93,000	$1,166.67	$256.67
$93,500	$1,083.33	$238.33
$94,000	$1,000.00	$220.00
$94,500	$916.67	$201.67
$95,000	$833.33	$183.33
$95,500	$750.00	$165.00
$96,000	$666.67	$146.67
$96,500	$583.33	$128.33
$97,000	$500.00	$110.00
$97,500	$416.67	$91.67
$98,000	$333.33	$73.33
$98,500	$250.00	$55.00
$99,000	$166.67	$36.67
$99,500	$83.33	$18.33
$100,000	$0.00	$0.00

31 rows in $500 steps, from $85,000 to $100,000.

Modified AGI	Deduction allowed	Tax saved at 22%
$175,000	$2,500.00	$550.00
$176,000	$2,416.67	$531.67
$177,000	$2,333.33	$513.33
$178,000	$2,250.00	$495.00
$179,000	$2,166.67	$476.67
$180,000	$2,083.33	$458.33
$181,000	$2,000.00	$440.00
$182,000	$1,916.67	$421.67
$183,000	$1,833.33	$403.33
$184,000	$1,750.00	$385.00
$185,000	$1,666.67	$366.67
$186,000	$1,583.33	$348.33
$187,000	$1,500.00	$330.00
$188,000	$1,416.67	$311.67
$189,000	$1,333.33	$293.33
$190,000	$1,250.00	$275.00
$191,000	$1,166.67	$256.67
$192,000	$1,083.33	$238.33
$193,000	$1,000.00	$220.00
$194,000	$916.67	$201.67
$195,000	$833.33	$183.33
$196,000	$750.00	$165.00
$197,000	$666.67	$146.67
$198,000	$583.33	$128.33
$199,000	$500.00	$110.00
$200,000	$416.67	$91.67
$201,000	$333.33	$73.33
$202,000	$250.00	$55.00
$203,000	$166.67	$36.67
$204,000	$83.33	$18.33
$205,000	$0.00	$0.00

31 rows in $1,000 steps, from $175,000 to $205,000.

Why 22 percent values the whole table

One rate covers every row because both bands sit inside a single bracket from end to end. That isn’t an assumption. It’s what the 2026 tables say once you subtract the standard deduction.

Filing status	Taxable income across the band	The 22% bracket runs
Single	$68,900 to $83,900	$50,400 to $105,700
Joint	$142,800 to $172,800	$100,800 to $211,400

Standard deduction of $16,100 single and $32,200 joint, per Rev. Proc. 2025-32 section 4.14.

What changed from last year

The single band didn’t move at all. Both ends read the same for 2025 and 2026. The joint band moved up $5,000 at each end.

Filing status	2025 band	2026 band
Single	$85,000 to $100,000	$85,000 to $100,000
Joint	$170,000 to $200,000	$175,000 to $205,000

File jointly with modified AGI between $200,000 and $205,000 and you gained a deduction this year. You were fully phased out for 2025. At $202,000 it’s now worth $250.00.

How to work out your modified AGI

For this deduction, modified AGI starts from your AGI and adds a few things back. Most people never touch the add-backs.

1.Take the AGI on Form 1040 or 1040-SR, line 11a

2.Figure it without the student loan interest deduction on Schedule 1, line 21

3.Add back the foreign earned income and housing exclusions, the foreign housing deduction, and income excluded by bona fide residents of American Samoa or Puerto Rico

With none of those in play, the number this tool wants is just your AGI before the student loan interest deduction. Got a complicated return? Publication 970 chapter 4 sends you to Worksheet 4-1, which works out the modified AGI and the deduction together.

Who can claim it

1.Any filing status except married filing separately

2.Nobody else claims you as a dependent

3.You’re legally obligated to pay the interest, and you paid it during the year

4.The loan is a qualified education loan

You deduct the lesser of $2,500 or the interest you actually paid. It’s an adjustment to income, so itemising isn’t required. Loan origination fees and capitalised interest both count, and Publication 970 chapter 4 covers what qualifies in full.

How your deduction is calculated

1.start = min(interest you paid, $2,500 cap)

2.if modified AGI is below the band, you keep the whole start amount

3.inside the band, allowed = start × (1 − (MAGI − band start) ÷ band width)

4.your savings = allowed × your tax bracket

Band widths are $15,000 single and $30,000 joint, set by 26 U.S.C. 221(b)(2)(B). They match the published endpoints exactly, and IRS Worksheet 4-1 divides by the same two numbers. The full cap at 22% is worth $550.

Where these numbers come from

Code recomputes every figure on this page from these five sources at build time. Nothing is typed into the copy by hand. Read them yourself.

Ready to file? Compare tax software

You computed your deduction. These handle the 1098-E and the rest of your return.

TurboTax

Imports your 1098-E and handles the phase-out.

FreeTaxUSA

Free federal e-file, student loan interest included.

TaxSlayer

Tiered plans covering Schedule 1 adjustments.

Affiliate disclosure: we may earn a commission at no cost to you.

Other breaks you might qualify for

$12,500 / $25,000 MFJ

No Tax on Overtime

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$25,000 per return

No Tax on Tips

Up to $25,000 of qualified tips, deducted from your income.

$2,200 / child

Child Tax Credit

$2,200 per qualifying child, permanent and inflation-indexed.

Estimates only, not tax advice. Figures are the 2026 IRS ones, a $2,500 cap phasing out from $85,000 of modified AGI single and $175,000 joint. A deduction lowers taxable income, so it is worth its size times your marginal rate rather than a dollar off your bill. State tax is not modelled. Check with a tax professional or your software before you file.