Are HOA Fees Tax-Deductible? What Homeowners Can Claim in 2026
Written by
Daria Uhlig
Edited by
Melanie Grafil, M.A., CHFC™
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In most cases, homeowner association fees aren’t tax-deductible. However, if the property generates income through rent or as a qualified home office, you might be able to write off HOA expenses.
Here’s a breakdown of the 2026 rules for deducting HOA expenses and how to report deductions you qualify for.
When HOA Fees Are Not Tax-Deductible for Most Homeowners
If you’re just living in your place and not renting it out or using it for a business, HOA fees are a personal expense, like homeowners insurance.
The IRS doesn’t allow deductions for personal expenses. That’s true whether you live in a single-family home, a townhome or a condo. In the case of a condo, a condo association is the same thing as a homeowners association, and the same tax rules apply.
Here are some instances when you can’t deduct HOA fees:
- The home is your primary home and you don’t rent it out.
- The home is a vacation home reserved solely for personal use.
Special assessments — additional fees for one-time repairs or capital improvements — aren’t immediately tax-deductible, but they can earn you a tax break when you sell.
The IRS rules regarding HOA fees are the same for homeowners who pay their fees directly, as they are for owners who pay via an escrow account managed by their mortgage lender. The method of payment has no bearing — only the use of the home does.
When HOA Fees May Be Tax-Deductible
HOA fees qualify as tax deductions when the home has a qualified business use. Here’s a breakdown:
HOA Fees for Rental Properties
If you’re renting out a property and paying HOA fees for it, you can usually write these fees off as part of your rental business expenses.
As long as the property is exclusively for rentals, it doesn’t matter if it’s a short- or long-term rental — the fees are deductible either way.
To claim the deduction on your tax return, report the fees as an “Other” expense on Schedule E (Form 1040)
HOA Fees for a Home Office
If you have a home office regularly and exclusively dedicated to your business and you’re also paying HOA fees, you might be able to deduct a slice of those fees.
To qualify for a home office deduction, the space must be the primary location of your business — usually defined as the place where all administrative and/or management tasks take place — and your only fixed location. W-2 employees typically don’t qualify.
The amount you can deduct is proportional to how much of your home you use exclusively for your business. For example, if your home office takes up 20% of the home’s square footage, you may be able to deduct 20% of the HOA fees.
Calculate the deduction on IRS Form 8829, which you submit with Schedule C (Form 1040) when you file your tax return.
Partial Deductions and Mixed-Use Homes
This is a common gray area. HOA deductions are tricky when the home is used for both personal use and rentals, as happens with vacation and seasonal homes. In these cases, the deduction is proportional to the number of days the home was in service as a rental.
Be sure to accurately record each rental period and document the reason for each of your visits to the property. That way, you’ll be able to support your claims if the IRS audits your return.
Here are some examples of activities that don’t qualify as rental days, and so don’t qualify for the deduction:
- Any rental days if you rent the home 14 or fewer days per year, or use it 10% or less of the number of days it’s rented at full market value, whichever is greater
- Days someone used the home for free or at a discounted rate
- Days you worked on the home while living or vacationing there
- Days the home was vacant but not available for rent
HOA Fees vs. Special Assessments: Tax Treatment Differences
A special assessment is a fee imposed by an HOA for a one-time expense outside the budget, or to meet financial reserve requirements.
Special assessments for necessary maintenance and repairs might be deductible — partially deductible in a mixed-use property — if they preserve your home’s value. An example is an exterior walkway repair in a condo building.
If, on the other hand, the project is a capital improvement that adds value to the property — the addition of a pool or golf course, for example — the only tax-saving option is to depreciate it over time. Note, however, that depreciation reduces your cost basis, i.e., your financial investment in the home, and can lead to higher capital gains tax if you later sell.
Here’s a snapshot comparison of tax treatment for HOA fees and special assessments for rental properties.
| Fee | Tax Treatment |
|---|---|
| HOA dues | Deductible |
| Special assessments | Depreciable |
How To Deduct HOA Fees if You Qualify
Once you’ve determined that you qualify to deduct HOA fees, take the following steps to claim your deduction.
- Gather records that verify the number of rental-use days or exclusive business use of your home office. Also have receipts for your HOA payments handy.
- If the home is a rental, calculate rental-use days. Home office offices must be 100% devoted to business use.
- Review IRS guidelines, like Publication 527 and Publication 587, so you understand the process before you start.
- Rental property owners: Report HOA fees on Schedule E.
- Home office deduction: Use Form 8829, and attach it to Schedule C.
Consider using tax software or hiring a tax professional if you’re unsure if you’.ll qualify for the deduction or don’t understand how to claim it.
Common Mistakes To Avoid When Deducting HOA Fees
Mistakes on your tax return can result in an audit and/or penalties and fees for incorrect reporting and underpayments. Here are some common ones.
- Deducting fees for a home office used for non-business activities
- Miscalculating personal-use vs. rental-use days for a rental property
- Deducting special assessments
- Depreciating special assessments without understanding the potential impact on capital gains tax
Quick Summary — Are HOA Fees Tax Deductible?
To sum up, here’s an at-a-glance look at when you can — and when you can’t — deduct HOA fees.
| Property Type | HOA Fees Deductibility |
|---|---|
| Rental property | Yes |
| Home office | Partially |
| Vacation home — not rented | No |
| Vacation home — partially rented | Partially |
Takeaway
Finding and working with a financial advisor is a great idea. A financial advisor will help keep track of your finances and assist you in attaining your financial goals. While finding the right one can be overwhelming, you can decide to work with a financial advisor in your community or a virtual one.
FAQs About HOA Fees and Taxes
Learn more about when you can and can't deduct HOA fees.- Can you deduct HOA fees if you itemize?
- No. Unlike mortgage interest and property tax, HOA fees are not deductible for personal-use properties. You can deduct part of the fees if you rent your home or have a home office there, but you deduct them from rental or business income, not your personal income, so itemizing has no impact.
- Are condo HOA fees tax-deductible?
- A condo association is an HOA -- it governs the community, and all owners automatically become members. So the IRS treats condo HOA fees the same way it treats HOA fees for single-family homes and townhomes. Unless you rent the home or have a home office there, HOA fees aren't tax-deductible.
- Do HOA fees count as property taxes?
- No. An HOA is a corporation typically formed by the developer of a planned community to govern the community according to rules and bylaws designed to protect homeowners' property values.
- HOA fees cover operating costs and other expenses necessary to achieve that goal. They pay for construction, maintenance and repairs of common areas like playgrounds, community buildings and other amenities, for example.
- Property tax, on the other hand, is a fee imposed by a state or local government to help fund its operations and pay for schools, libraries, roads, health, recreation and other services and facilities for the benefit of the public.
- Are HOA fees deductible for a vacation home?
- Sometimes. To qualify, it must be in service as a rental at least 350 days per year, or be split at least 10% to 90% between personal use and rental use, whichever is more. In that case, you can take a partial deduction prorated for the rental-use portion of the year.
Carley Clark contributed to the reporting for this article.
Information is accurate as of Jan. 12, 2026.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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