Year-End Tax Moves to Save Money for Homeowners and Renters

As the year winds down, a few steps can make tax season smoother and help you enter the new year feeling prepared and confident. Whether you own your home or rent, these year-end moves can help you capture savings and avoid surprises.

(Renters - jump down the page)

‍For Homeowners: 5 Key Year-End Tax Moves

‍1. Start With the Big Question: Will You Itemize or Take the Standard Deduction?

This decision affects almost every homeowner tax benefit.

The standard deduction is higher in 2025 ($15,750 for single filers, $31,500 for married couples filing jointly), which means you’ll only see a tax advantage from your mortgage interest or property-tax deductions if your itemized deductions exceed that amount.

What to review now:
        •  Your mortgage interest for the year
        •  State and local taxes (SALT) paid
        •  Charitable contributions you’ve made
        •  Any large medical bills
        •  Other deductible expenses

2. Maximize the Classic Homeowner Deductions

🏠 Mortgage Interest
If you’re paying a mortgage, part of your monthly payment is interest—and you may be able to deduct it.

Make sure you:
       •  Keep your Form 1098 from your lender
       •  Save your refinance closing documents if you refinanced this year (points and fees may matter)

🧾 Property Taxes
Property taxes can also be deductible within SALT limits.

Consider:
       •  Paying your January property tax installment in December if you plan to itemize
       •  Separating regular property taxes from non-deductible assessments

3. Make Energy-Efficient Upgrades Before December 31

If you’ve been planning to install energy-saving upgrades, the IRS offers generous credits for things like:
       •  Solar panels
       •  Heat pumps
       •  Energy-efficient windows and insulation
       •  Home battery systems

These are tax credits, not deductions—meaning every dollar directly reduces your tax bill.

4. If You Sold a Home This Year: Protect Your Profit

Selling your home can trigger capital gains tax, but the law gives homeowners a major break if they meet residency requirements.

To make the most of the capital gains exclusion, gather and document:
       •  Major improvements (roof replacement, renovations, additions)
       •  Closing costs from when you bought or sold
       •  Agent commissions
       •  Transfer taxes and title fees

These all increase your cost basis, which can significantly reduce your taxable gain.

5. Extra Benefits for Landlords or Home-Based Business Owners

If you rent out part of your home or run a business from it, you may have additional deductions, including:
       •  Depreciation
       •  Repairs and maintenance
       •  Home office expenses
       •  Utilities and insurance (portionally allocated)
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You may also be able to prepay certain expenses in December to reduce your taxable income for 2025.
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1. Check Whether Your State Offers a Renter’s Tax Credit

Some states offer credits or refunds simply for being a renter, since renters indirectly contribute to property taxes through their monthly payments.

For example: California offers renters a tax credit of $60 for single filers earning less than $52,421 in 2025 and $120 for joint filers earning less than $104,842 in 2025.

‍How to check if your state offers a credit:

Use the IRS’s official directory of State Tax Agencies to find your state’s tax department and search for “renter tax credit,” or “property tax relief.”

👉 Search your state here

2. Review Your Withholding to Avoid a Surprise Tax Bill

Adjusting your W-4 withholding can help ensure you don’t owe unexpectedly—or help you receive a refund next year.

Before December 31, review:
        •  Whether you owed taxes last year
        •  Whether your refund was much larger than expected
        •  Any income changes (raise, bonus, job change)

Use the IRS Withholding Estimator to check your numbers.
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3. Track Eligible Energy-Efficient Purchases

Even renters may qualify for federal energy tax credits, depending on the equipment or products purchased during the year.‍

Eligible items may include:
        •   ENERGY STAR air purifiers
        •  Portable heat pump systems
        •  Certain insulation products (if approved by your landlord)
        •  Energy-efficient window units
        •  Smart thermostats

4. Review Your Renter’s Insurance Coverage

This isn’t a tax deduction, but it is a smart year-end financial move.

Check whether your coverage still matches your needs:
        •   Have you purchased new electronics or valuables?
        •  Do you need extra protection for jewelry or equipment?
        •  Are you eligible for discounts (alarm system, multi-policy, etc.)?

5. Prepare Early for Lease Renewals or a Future Move‍

Many renters face lease renewal decisions early in the new year. Before December 31, take time to review:
        •  Expected rent changes
        •  Your monthly budget and savings goals
        •  Whether staying or moving aligns better with your priorities
        •  Local rental market trends
        •  Eligibility for housing or utility support programs

Whether you own or rent, planning now gives you options later. A little clarity today can help you make confident, thoughtful housing decisions when renewal season arrives.