Is storm damage tax deductible?
Short answer. Sometimes. Uninsured storm damage to your own home is deductible as a personal casualty loss only when it results from a federally declared disaster or, beginning in 2026, a qualifying state declared disaster, and only after subtracting insurance, $100 per event and 10 percent of adjusted gross income. Storms without a declaration, costs insurance covered and routine maintenance are not deductible.
What can count
- The uninsured part of sudden damage from a declared disaster: wind, hail, flood, tornado or hurricane.
- Your insurance deductible, as part of the unreimbursed loss.
- Damage your policy excluded, such as flood without flood insurance, if the event was declared.
What does not
- Damage from storms without a qualifying declaration.
- Anything insurance, FEMA grants or other reimbursements paid for.
- Gradual deterioration, termites or wear.
- Improvements beyond the home's original condition.
Special rules worth knowing
- Prior-year election: for a federally declared disaster, you can claim the loss on the previous year's return to get a refund sooner.
- Qualified disasters: Congress sometimes designates major disasters, such as Hurricane Helene in 2024, for a $500 floor, no 10 percent test and a deduction you can take without itemizing.
- Gains: if insurance pays more than your adjusted basis in the damaged property, you may have a taxable gain, with ways to postpone it by rebuilding.
Paperwork to keep
Photos, the insurance estimate and settlement, contractor invoices, FEMA letters and the disaster declaration number. The loss is reported on Form 4684, and IRS Publication 547 explains the details. Rental and business property follow different rules.
This is general information, not tax advice. For how insurance payments are calculated, see recoverable depreciation and percentage deductibles.