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Generally, no. For your own home, radon mitigation is usually treated as a personal home improvement, and those are not deductible on a federal return. There are narrow exceptions. What you pay for radon mitigation may add to your home's cost basis, rental property owners may recover it through depreciation, and rare medical cases may qualify. Ask a tax professional about your situation.
This article is general information, not tax or legal advice. Tax rules change and depend on your situation. Talk to a CPA or tax preparer before you file.
Why it is usually not deductible
The IRS does not let you deduct the cost of improving your own home in the year you pay for it. A radon system is a permanent addition to the house, like a new roof or a sump pump. It improves the home, so it is treated the same way.
We are not aware of any federal tax credit that applies to radon mitigation systems. Energy efficiency credits are aimed at items like insulation, windows and heat pumps, and radon systems are not on those lists.
The narrow exceptions
1. Adding to your cost basis
Even if you cannot deduct it now, a radon system is generally a capital improvement. Capital improvements can be added to your home's cost basis. A higher basis can lower your taxable gain when you sell. For many owners the home sale exclusion already covers the gain, so this may not matter. Keep your invoice and clearance test results with your home records either way.
2. Rental and business property
If you own a rental home or a business building, a radon system is usually treated as an improvement to that property. Improvements are generally recovered through depreciation over time, not deducted all at once. Some smaller costs, like a repair to an existing system, may be treated differently. Your tax preparer can tell you how to handle it.
3. Medical expense deduction (rare)
IRS Publication 502 allows some home improvements to count as medical expenses if their main purpose is medical care. Publication 502 does not mention radon. Even when an improvement qualifies, the deductible amount is reduced by any increase in the home's value, and you can only deduct total medical expenses above 7.5% of your adjusted gross income, and only if you itemize. For most people, this does not apply. Ask a tax professional before you try it.
4. HSA or FSA funds
In December 2012, EPA asked the IRS to clarify whether radon testing and mitigation could be paid with health savings or flexible spending account funds. In a 2013 information letter, the IRS said it had no published position treating these costs as medical care and planned to address the issue in future regulations. We have not found later IRS guidance that settles the question. Check with your plan administrator.
What to keep for your records
- The written quote and final invoice
- Proof of payment
- The post-install clearance test result
- The installer's PA DEP certification number on the paperwork
These help with your cost basis records, and buyers often ask for them when you sell.
Lowering the cost without a tax break
If a deduction is not available, the best way to control cost is to compare quotes carefully. Quotes can differ a lot because of foundation type, the number of suction points, the pipe route and what is included. Our guide on why radon mitigation quotes vary shows how to compare them line by line.
Why York homes should still act
York County is in EPA Radon Zone 1. EPA recommends fixing homes at or above 4.0 pCi/L and estimates radon causes about 21,000 lung cancer deaths a year in the U.S. The lack of a tax break does not change the health case for fixing a high level.
Key takeaways
- Radon mitigation on a primary home is generally not tax deductible.
- It may add to your home's cost basis. Keep your records.
- Rental and business owners usually recover it through depreciation.
- Medical expense treatment is rare and limited.
- This is not tax advice. Ask a tax professional.
Frequently Asked Questions
Can I deduct a radon test?
For a primary home, usually not. A test for a rental property may be a deductible expense. Ask your tax preparer.
Does Pennsylvania offer a state tax credit for radon?
We are not aware of a Pennsylvania income tax credit for radon mitigation. Check with a tax professional for current rules.
Should I keep my radon invoice?
Yes. It supports your cost basis and is useful when you sell.