Updated September 29, 2026. Quick answer: The maximum student loan interest deduction under 26 U.S.C. §221 is a flat $2,500, never indexed for inflation since it was enacted. The modified adjusted gross income phase-out range that limits who can claim it, however, is inflation-adjusted every year: for 2026 it is $85,000 to $100,000 for single filers and $175,000 to $205,000 for joint filers, per IRS Revenue Procedure 2025-32, up from 2025’s identical single range but a lower $170,000-to-$200,000 joint range. No named forecaster has published a 2027 projection for this phase-out range as of this page’s last update.
The $2,500 cap and its phase-out range, 2025-2026
| Year | Maximum deduction | Single/HOH phase-out | Joint phase-out |
|---|---|---|---|
| 2025 | $2,500 (flat) | $85,000-$100,000 | $170,000-$200,000 |
| 2026 | $2,500 (flat) | $85,000-$100,000 | $175,000-$205,000 |
| 2027 | $2,500 (flat) | Not yet projected | Not yet projected |
One flat number and one moving range, in the same sentence of the statute
26 U.S.C. §221(b)(1) sets the maximum deduction at $2,500 with no cost-of-living clause attached; it has not been indexed for inflation. §221(b)(2)(B), by contrast, phases the deduction out over a MAGI range that is adjusted for inflation annually, and IRS Revenue Procedure 2025-32, section 4.29, states this explicitly, using the phrase “as adjusted for inflation” in the same sentence that gives the dollar figures: single/head-of-household filers phase out between $85,000 and $100,000 of MAGI for 2026, unchanged at the bottom from 2025 but with the top of the joint range rising from $200,000 to $205,000 (and the bottom of the joint range from $170,000 to $175,000). This is a genuinely different figure from the education credits’ phase-out on the previous page in this series: the education credits’ range is frozen by statute, while this one moves every year.
The 2027 gap: nobody has projected this one yet
Thomson Reuters Checkpoint’s September 11, 2026 key-figures article covers a different, easily confused provision, the §135 savings-bond education interest exclusion, but does not include a §221 student loan interest figure; neither does Bloomberg Tax’s 2027 projection report, based on the summaries this page could access. This page will be updated with a 2027 projection the first time a named forecaster publishes one, and with the official figures the day the IRS issues its 2027 Revenue Procedure.
The rates are already settled. Only the thresholds are still moving.
That is enough to plan against. A Roth conversion, a deferred bonus or a gain taken in 2027 can be sized today against the 10%, 12%, 22%, 24%, 32%, 35% and 37% rates the statute already fixes, without waiting for the Revenue Procedure. If you want someone to price that decision against your own income rather than a projection, this is the point to ask.
Before you start, what actually happens. The form is run by Kapitalwise, our advisor-matching partner. Kapitalwise sends your details to advisers who pay for the introduction, so expect calls and texts. Clear Money Guide is paid when you submit the form, whether or not you ever hire anyone. This is free to you and there is no obligation to hire anyone.
The Kapitalwise form opens here. You stay on this page.
What happens when you press the button
It asks about nine questions (age, investable assets, location), then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Sources
The student loan interest deduction amounts on this page were checked against IRS Revenue Procedures 2025-32 (2026 amounts) and 2024-40 (2025 amounts) and 26 U.S.C. §221 on September 29, 2026.
- IRS Revenue Procedure 2025-32, section 4.29: the exact 2026 phase-out range ($85,000-$100,000 single, $175,000-$205,000 joint), read directly from the PDF's text.
- IRS Revenue Procedure 2024-40, section 2.30: the exact 2025 phase-out range ($85,000-$100,000 single, $170,000-$200,000 joint), read directly from the PDF's text.
- 26 U.S.C. §221 (uscode.house.gov): the statute that defines these figures.
Statute: 26 U.S.C. §221(b).
Related
General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.