Are Bathroom Remodels Tax-Deductible?

Important: This post does not constitute legal or financial advice. Always consult a licensed tax professional or accountant for guidance based on your specific situation.

For most Virginia homeowners, bathroom remodel expenses are not tax-deductible. The IRS generally considers home improvements, like bathroom upgrades, to be personal expenses and does not allow a deduction for them on your federal income tax return.

However, there are a few specific exceptions where a bathroom renovation may qualify for a deduction or financial assistance:

1. Home Office Deduction

If you use part of your home exclusively and regularly for business, and the bathroom you remodel is part of that space, you may qualify for a home office deduction.

  • Example: You operate a licensed home daycare or consult from a home office with its own bathroom.
  • In such cases, you could deduct a portion of the remodeling costs tied to business use.

2. Medical Expense Deduction

Bathroom renovations done for medical purposes, such as accessibility modifications may be deductible as medical expenses.

Eligible modifications may include:

  • Widening doorways for wheelchair access
  • Installing ADA compliant grab bars or walk-in tubs
  • Lowering sinks or countertops

These must be recommended by a medical professional and primarily for medical necessity.

Keep in mind:

  • Only the portion of the cost that exceeds the increase in your home’s value may be deductible.
  • You must itemize deductions and meet the IRS threshold for medical expenses (currently 7.5% of AGI).

3. Assistance for Disabled Veterans

If you’re a disabled veteran in Virginia, you may be eligible for state or federal grants to assist with your bathroom remodel.

At Bath Source, we’re familiar with programs such as:

  • VA’s Specially Adapted Housing (SAH) and Special Housing Adaptation (SHA) grants
  • Local assistance programs for service-connected disabilities

Our team can help you explore these options and guide you through the process.

Final Thoughts

While most bathroom remodels won’t qualify for tax deductions, they can still be a smart financial investment. In Virginia’s housing market, upgraded bathrooms are a top feature buyers look for and they often boost resale value.

If you want to discuss your renovation needs, or explore financing or veteran assistance options, give us a call at (757) 207-2080.

We’ve been proudly serving Virginia homeowners since 1993, are locally owned and operated, and maintain an A+ rating with the Better Business Bureau (BBB) of Hampton Roads.