If you’re thinking about buying a home in Reno, Sparks, Carson City, or any other Northern Nevada city like Dayton, Fernley, or Minden, you might be wondering, “Do I get a tax credit for buying a house?” It’s a great question, especially with home prices and mortgage rates making homeownership a big decision. At Craig Team Realty at eXp, we’re here to help you understand the tax benefits available in 2025 for buying or selling a house in Northern Nevada. While there’s no federal tax credit specifically for purchasing a home in 2025, there are other tax benefits that can help you save money. Let’s break it down in a simple way to help you make informed choices about buying or selling a home in places like Gardnerville, Fallon, or Virginia City.
Is There a Federal Tax Credit for Buying a Home in 2025?
In the past, there was a federal first-time homebuyer tax credit in the United States, introduced during the 2008 financial crisis. It offered up to $7,500 in 2008 and $8,000 in 2009 and 2010 for first-time buyers. However, this program ended in 2010 and has not been brought back for 2025. So, if you’re buying a house in Reno, Sparks, or Carson City, there is no federal tax credit just for purchasing a home. But don’t worry—there are other ways to save on taxes when you buy or sell a home in Northern Nevada, and we’ll cover those next.
Proposed Tax Credits: What’s on the Horizon?
While no federal tax credit exists for buying a house in 2025, there have been proposals to bring back a first-time homebuyer tax credit. For example, the First-Time Homebuyer Tax Credit Act of 2024 suggested a refundable credit of up to $15,000 for first-time buyers. This credit would help those buying a primary residence in places like Fernley, Dayton, or Genoa, but it hasn’t been passed into law as of August 2025. Another proposal from 2024, backed by the Biden administration, offered a $10,000 tax credit for first-time buyers over two years, but it also hasn’t been approved. These proposals show that lawmakers are thinking about ways to help homebuyers, but for now, they aren’t available. If you’re considering buying or selling a home in Minden, Silver Springs, or Stagecoach, it’s a good idea to check with a tax professional for updates on these potential credits.
Tax Benefits You Can Use When Buying a Home in Northern Nevada
Even without a direct tax credit for buying a house, there are tax deductions and credits that can lower your costs as a homeowner in Northern Nevada. These benefits apply whether you’re in Sun Valley, Silver City, or Verdi. Here are some key ones to know about:
- Mortgage Interest Deduction: When you buy a home in Reno or Sparks with a mortgage, you can deduct the interest you pay on your loan from your federal taxes. This applies to mortgages up to $750,000 for single filers or married couples filing jointly. For example, if you buy a house in Carson City and pay $10,000 in mortgage interest in 2025, you can reduce your taxable income by that amount, as long as you itemize your deductions. Itemizing means listing out specific expenses instead of taking the standard deduction, which is $15,000 for single filers or $30,000 for married couples in 2025.
- Property Tax Deduction: Property taxes you pay on your home in Fernley, Fallon, or Gardnerville are deductible up to a $10,000 limit for state and local taxes combined. This can help lower your tax bill if you itemize. For instance, if you own a home in Dayton and pay $5,000 in property taxes, you can deduct that amount, but only if your total deductions are more than the standard deduction.
- Mortgage Credit Certificate: Some first-time or low-income buyers in Northern Nevada may qualify for a Mortgage Credit Certificate through the Nevada Housing Division. This program lets you claim a federal tax credit of up to 30% of your mortgage interest, capped at $2,000 per year. For example, if you’re buying a home in Moundhouse or Genoa and pay $8,000 in mortgage interest, you could get a credit of up to $2,000. You’ll need to apply through a participating lender and meet income and purchase price limits. Check with a tax professional to see if you qualify.
- Energy Efficiency Credits: If you make energy-efficient upgrades to your home in Silver Springs, Stagecoach, or Virginia City, like adding solar panels, you may qualify for the Residential Clean Energy Credit. This federal credit covers 30% of the cost of qualifying improvements, such as solar panels or geothermal heat pumps, through 2032. For example, if you spend $20,000 on solar panels for your Reno home, you could get a $6,000 tax credit. Additionally, the Energy Efficient Home Improvement Credit offers up to $3,200 for other upgrades like efficient windows or insulation. These credits apply to existing homes, not new builds, and must be for your primary residence.
These deductions and credits can make a big difference, but they often require you to itemize your deductions. Always talk to a tax professional to understand what’s best for your situation, whether you’re in Verdi or Silver City.
How These Benefits Help When Selling a Home
If you’re planning to sell a home in Northern Nevada, understanding tax benefits can also help you prepare. For example, when you sell your house in Sparks, Carson City, or Fallon, you may be able to exclude up to $250,000 of profit ($500,000 for married couples) from capital gains taxes if you’ve lived in the home for at least two of the last five years. This is called the home sale exclusion, and it’s a big perk for sellers in places like Minden or Gardnerville. Additionally, if you make energy-efficient upgrades before selling, like adding solar panels in Sun Valley, you could qualify for the Residential Clean Energy Credit and make your home more appealing to buyers. At Craig Team Realty, we can guide you through the selling process to maximize your home’s value and understand these tax benefits.
Why Work with a Northern Nevada Realtor?
Buying or selling a home in Reno, Sparks, Dayton, or any Northern Nevada city is a big step, and having a knowledgeable real estate agent makes all the difference. At Craig Team Realty at eXp, we know the local real estate market in places like Fernley, Moundhouse, and Silver Springs inside and out. We can help you navigate the home buying or selling process, connect you with trusted professionals like tax advisors, and ensure you understand all available benefits. Whether you’re looking at houses for sale in Carson City or selling a home in Genoa, our team is here to make the process smooth and stress-free.
Other Ways to Save When Buying or Selling in Northern Nevada
Besides tax deductions and credits, there are other programs in Northern Nevada that can help with homeownership costs. The Nevada Housing Division offers down payment assistance through programs like Home Is Possible, which provides up to 5% of the loan value for down payments or closing costs for qualified buyers in cities like Fallon, Verdi, or Virginia City. These programs can make buying a home more affordable, especially for first-time buyers. For sellers, staging your home in Dayton or Fernley to highlight energy-efficient features, like new windows or solar panels, can attract buyers and potentially increase your sale price. Always consult with a financial advisor or tax professional to explore these options fully.
Ready to Buy or Sell a Home in Northern Nevada?
Whether you’re buying your first home in Reno or selling a house in Sparks, understanding tax benefits can help you save money. While there’s no federal tax credit for buying a home in 2025, deductions like mortgage interest and property taxes, along with credits like the MCC or energy efficiency credits, can make a big difference. At Craig Team Realty at eXp, we’re your trusted real estate agents for Northern Nevada, serving Sparks, Carson City, Dayton, Fernley, Fallon, Minden, Genoa, Gardnerville, Moundhouse, Sun Valley, Silver Springs, Stagecoach, Silver City, Verdi, and Virginia City. Our team is here to answer your questions, guide you through the real estate market, and help you achieve your homeownership goals.
Contact Cassie Craig and the Craig Team Realty at eXp today at (775) 306-7591 to start your journey in the Northern Nevada real estate market. Let us help you buy or sell your home with confidence!