Are HOA fees tax deductible? Sometimes

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Taxes

Are HOA fees tax deductible? Sometimes — here's when.

E. Napoletano · Contributor Updated Thu, February 5, 2026 at 10:34 PM GMT+8 6 min read

According to the latest American Community Survey from the U.S. Census Bureau, 21.6 million homeowners paid an HOA or condo fee in 2024. That works out to nearly a quarter of U.S. homeowners. If you pay HOA dues, you’re likely wondering whether these fees are tax deductible. The short answer is usually no — HOA fees are generally not tax deductible. However, there are exceptions.

How HOA fees and special assessments work

HOA fees, also known as condo dues if you live in a condominium association, cover various expenses that the homeowners within the association share. HOAs typically maintain common areas in the community. In some situations, they pay for services like trash and snow removal, sewer and water bills, landscaping, and the upkeep of amenities such as a swimming pool and fitness center.

For those living in condominiums, HOA or condo fees may also cover insurance and major improvements or repairs to shared building structures (such as roof replacements) and parking fees.

Read more: Should you buy a house with a homeowners' association?

When are HOA fees tax deductible?

HOA fees are generally not tax deductible, just like other homeownership costs, such as your homeowner’s insurance, utility bills, and regular maintenance expenses. However, a few IRS exceptions could allow you to deduct some or all of your HOA dues on your tax return.

HOA fees and rental properties

If you own an investment property exclusively used as a rental, you can deduct certain expenses for that investment on your income tax return — including your HOA fees. If you rent to a tenant year-round, you may be able to take a tax deduction for all of your HOA dues on that property. However, you typically cannot deduct special assessments for capital improvements to the community.

If you own a second home you use occasionally and rent periodically for income, you may also be able to deduct a portion of your HOA dues. The amount you can deduct depends on how much of the year you rent your property. If you rent your property for 15 days or more annually, you can deduct HOA expenses for the days the property was rented.

If you rent out your property for fewer than 15 days, it is considered a second home, not a rental property. You won’t need to report your rental income or expenses, and you won’t be able to deduct your HOA dues.

Here’s a bonus: You can deduct a prorated portion of your HOA fees if you only rent out a portion of your home, like a single bedroom. For instance, if that bedroom square footage is 10% of the total square footage of your home, you could write off 10% of your annual HOA dues.

HOA fees and a home office

If you are self-employed and take a home office deduction, a portion of your HOA dues can be considered tax deductible. The amount you can deduct for your HOA dues depends on how much of your home is used for your home office. For example, if your home office is the equivalent of 10% of your home, you may be able to deduct 10% of your HOA dues.

There’s one caveat with the home office and HOA fees to keep in mind: You can only deduct HOA fees if you file a Schedule C with your Form 1040. That means remote W-2 employees are out of luck. More on this in a bit, but it’s important to mention now.

Read more: Home office deduction — Who can claim it, and how much can you save?

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How to deduct HOA fees on your taxes

Choose between standard and itemized deductions

All taxpayers can take the standard deduction when filing their taxes. This is a predetermined amount set by the IRS. However, you may choose to itemize your deductions instead — this means writing off all of your deductions, not just your HOA dues, individually and forgoing the standardized deduction.

Itemized deductions are better if you’ll save more than if you took the standard tax deduction. Here are the standard deduction limits for tax years 2025 and 2026. (Remember, you’ll pay your 2025 taxes in 2026 and 2026 taxes in 2027.)

If you can save more by itemizing your deductions, it may be worth it so you can write off your HOA fees.

Learn more: Standard deduction vs. itemized: Which tax filing approach is right for you?

Deducting your HOA dues

If you believe you qualify for one of the above exceptions that make your HOA fees tax deductible, you should probably consult a tax advisor to ensure you meet all of the IRS requirements.

To qualify for HOA fee deductions for your home office, you’ll need to meet IRS requirements, such as using the space exclusively for work. You may be able to use a simplified method to determine how much you can deduct for your home office, including HOA fees. Details about the home office deduction can be found in IRS Publication 587, and you’ll file any deductions related to your home office on Schedule C.

You’ll use Part 1 of Schedule E to list rental income and expenses to take a tax deduction for your HOA fees for a second home. If you rent your second home part time, it may be best to consult a tax specialist, as the rules are complex. You can also review IRS Publication 527.

Learn more: 8 tax deductions for homeowners to lower their income tax

HOA fees and tax deductions FAQs

Are HOA fees tax deductible on the IRS?

Generally, no. HOA fees aren’t tax deductible on your federal tax return if the home is your primary residence. The IRS treats HOA dues as a personal expense, similar to utilities or lawn care. There are a couple of exceptions, though. If you rent out the property, HOA fees could be deductible as a rental expense. And if you use part of your home exclusively for business, a portion may qualify — but only in specific, limited cases.

Can I deduct HOA fees if I work from home?

Usually, no. The IRS is pretty strict here, so working from home doesn’t automatically make HOA fees deductible. You may be able to deduct a portion of your HOA fees if you qualify for the home office deduction and use part of your home exclusively and regularly for business. Even then, the deduction is limited and often modest. If you’re a W-2 employee working remotely, HOA fees generally aren’t deductible at all.

Does an HOA fee count as property tax?

HOA fees don’t count as property taxes. Even though they’re often bundled into your monthly housing costs, the IRS treats them very differently. Property taxes are assessed by local governments and may be deductible if you itemize. HOA fees, on the other hand, are payments to a private association for expenses such as community or building maintenance, amenities, and shared services. Because of that distinction, HOA fees generally aren’t deductible as property taxes.

This article was edited by Laura Grace Tarpley.