Is Radon Mitigation Tax Deductible? What Homeowners Should Know

For most homeowners living in their primary residence, radon mitigation is not a standard tax deduction. The IRS does not have a specific line item or credit for radon reduction work. However, that does not mean the expense has zero tax benefit.

There are two main paths where radon mitigation can provide a tax advantage. First, it may qualify as a medical expense deduction under specific circumstances. Second, and more commonly, the cost adds to your home's cost basis, which reduces your capital gains tax when you sell.

For rental property owners, the situation is more favorable. Radon mitigation in a rental unit can often be deducted as a business expense or depreciated over the system's useful life.

The IRS allows deductions for certain home improvements made primarily for medical reasons. If a doctor has recommended radon mitigation because of a household member's health condition, such as a history of lung disease or elevated cancer risk, the cost may qualify as a medical expense.

To claim this deduction, your total medical expenses for the year must exceed 7.5% of your adjusted gross income (AGI). Only the amount above that threshold is deductible. For example, if your AGI is $80,000, your medical expenses would need to exceed $6,000 before any deduction applies. At that point, only the amount over $6,000 is deductible.

This path requires solid documentation: a written recommendation from your physician, the radon test results showing elevated levels, invoices for the work, and ideally an appraisal showing any value change. Most homeowners do not meet all these requirements, which is why the cost basis approach is more commonly used.

The most straightforward tax benefit of radon mitigation is through your home's cost basis. The IRS considers radon mitigation a capital improvement, meaning the cost is added to the purchase price of your home when calculating capital gains at the time of sale.

Here is how that works in practice. Say you bought your home for $300,000 and spent $1,800 on radon mitigation. Your adjusted cost basis is now $301,800. If you later sell the home for $450,000, your taxable gain would be $148,200 instead of $150,000. While the savings on a single improvement may be modest, it adds up when combined with other capital improvements over the years.

For most homeowners, the capital gains exclusion ($250,000 for single filers, $500,000 for married filing jointly) means they will not owe capital gains tax anyway. But for homeowners in high-appreciation markets like metro Atlanta, or those who have owned their homes for decades, the cost basis adjustment can matter significantly.

To take advantage of this, simply keep your receipts, invoices, and any contracts related to the radon mitigation work. Store them with your home purchase documents and other improvement records.

The tax picture is considerably better for landlords and investment property owners. Radon mitigation in a rental property is a legitimate business expense, and the IRS allows it to be either deducted or depreciated.

The classification between repair and improvement can be complex. A tax professional familiar with rental property can advise on the best approach for your situation. Either way, landlords get a clear tax benefit that owner-occupants generally do not.

While federal tax benefits for radon mitigation are limited for homeowners, some states and local governments offer assistance programs. These are not tax deductions but can reduce your out-of-pocket costs.

Several states offer grants or low-interest loans for radon mitigation, particularly for low-income homeowners. The availability and specifics change frequently, so check with your state radon office or the EPA's State Radon Contact page for current programs. Use our free mitigation cost estimate tool to see what you might spend. You can also explore our radon mitigation services for details on what is included.

In Georgia, the state does not currently offer a dedicated radon mitigation financial assistance program. However, some county health departments and community organizations occasionally run programs that include radon testing and mitigation support. It is worth contacting the Georgia Department of Natural Resources for the latest information.

A few states have passed or proposed legislation that would create tax incentives for radon mitigation. If enough states adopt these measures, it could eventually drive federal legislation. For now, homeowners should focus on the cost basis benefit and check their state's current offerings.

Regardless of which tax path applies to you, proper documentation is essential. Keep the following records organized and stored safely.

Even if you do not expect to itemize deductions this year, these records will be valuable when you sell your home and need to calculate your cost basis. Treat the radon system like any other home improvement and keep the paperwork indefinitely. For a full breakdown of what mitigation costs, see our 2026 radon mitigation cost guide. Understanding the return on investment for radon mitigation can also help justify the expense. In a real estate context, selling a house with high radon in Georgia is easier when mitigation is already documented.