Are insurance deductibles tax deductible?

How the casualty loss rules work

For a home you live in, federal law limits personal casualty loss deductions to losses from federally declared disasters. Starting in 2026, losses from certain state declared disasters can also qualify, under changes made in 2025. If your storm qualifies, the deductible you paid is part of your unreimbursed loss, along with any damage your policy did not cover.

From that loss you subtract:

• $100 per casualty event.
• 10 percent of your adjusted gross income.

Whatever is left may be deductible if you itemize. On a typical roof claim, a $2,000 deductible rarely survives a 10 percent of income floor, which is why most homeowners get no deduction. IRS Publication 547, Casualties, Disasters, and Thefts, has the worksheets.

When the answer is different

• Rental or business property: unreimbursed losses, including the deductible, are generally deductible without the declared disaster requirement.
• Health insurance deductibles: these fall under the medical expense deduction, which has its own income floor and requires itemizing.

Keep the paperwork

If a big storm does get a disaster declaration, you will want the claim estimate, proof of what you paid and photos of the damage. A percentage wind and hail deductible can be large enough to matter; see percentage deductibles and the after a hail storm checklist. This is general information, not tax advice.