CalcStack — free, instant, no signup. The interactive calculator loads automatically.

Student Loan Interest 2026

Up to $2,500 off the top — no itemizing, but the phase-out is quietly shrinking it.

The student loan interest deduction is above-the-line — you get it even taking the standard deduction — worth up to $2,500 off your income. But it phases out: for 2026, from $85,000–$100,000 MAGI (single) and $175,000–$205,000 (married filing jointly), and married filing separately cannot claim it at all. This calculator applies the exact proportional reduction, shows the dollars lost to the phase-out, the tax saved at your bracket, and the pre-tax 401(k)/HSA moves that reduce MAGI and restore the deduction.

Why people use this

Anyone paying down student loans uses it to claim the $2,500 above-the-line deduction they do not need to itemize for — and to see the phase-out quietly eating it as their salary grows, plus the 401(k)/HSA move that pulls MAGI back under the line.

How it works

1. Pick your filing status — married filing separately is ineligible at any income (IRC §221(e)(2)).
2. Enter total student loan interest paid in 2026 — your servicer reports it on Form 1098-E; the cap is $2,500.
3. Enter your MAGI (AGI before this deduction, with certain exclusions added back).
4. Read the deductible amount, the tax saved at your marginal bracket, and how much the phase-out is costing you.

Common questions

What is the student loan interest deduction for 2026?

Up to $2,500 of interest paid, deducted above-the-line — you do not need to itemize. Phase-outs (Rev. Proc. 2025-32): single/head-of-household MAGI $85,000–$100,000; married filing jointly $175,000–$205,000; married filing separately ineligible. You also cannot claim it while being claimed as a dependent, even if you are the one making the payments.

How does the phase-out reduce the deduction?

Proportionally across the band: deduction = min(interest paid, $2,500) × (top of range − MAGI) ÷ width. Example: single filer who paid $2,800 with $92,500 MAGI is 50% through the band → $2,500 × 0.5 = $1,250 deductible, worth $275 at the 22% bracket. At $100,000 it is zero — a hard cutoff on a deduction worth up to $800/yr at higher brackets.

Can I restore the deduction if I am in or past the phase-out?

Yes — the deduction is keyed to MAGI, so anything that reduces MAGI pulls you back in: pre-tax 401(k) and traditional HSA/payroll contributions do double duty here, saving their own tax AND restoring student-loan deductibility. One nuance: if a parent claims you as a dependent, nobody gets the deduction — a parent who is not legally obligated on the loan cannot claim it either, so for non-cosigned loans the dependent question decides whether the deduction is used at all.

Browse all 500+ free calculators →