Is hurricane damage deductible in 2026?

Yes, if it was a federally declared disaster or, starting tax year 2026, a State declared disaster. OBBBA broadens IRC §165(h) to cover a natural catastrophe (hurricane, tornado, storm, earthquake) or any fire, flood or explosion that the governor and the Treasury Secretary both determine is severe enough. Storm damage outside a declared disaster is not deductible. You file Form 4684 and itemize on Schedule A — unless the President declared a major disaster for your area: then it is a qualified disaster loss (P.L. 119-108, Sept 2026) with a $500 floor, no 10%-of-AGI floor, and it can be added to the standard deduction instead.

My state declared a disaster but FEMA didn't — can I deduct?

Possibly, starting tax year 2026. From 2018–2025, only federally declared disasters qualified. From 2026, a State declared disaster also qualifies, but §165(h)(5)(C) requires both the governor (or D.C. mayor) and the Treasury Secretary to determine that the damage is severe enough; a state proclamation alone does not establish it. Keep a copy of the declaration reference with your records.

Do I subtract $100 once or per item?

$100 PER EVENT, not per item. If a single storm destroys three items in your house, that is one event and one $100 reduction. Two separate storms in the same year are two events and two $100 reductions.

What if insurance covered everything?

You cannot deduct a loss fully covered by insurance. You must also reduce the loss by any reimbursement you were eligible to claim but didn't file for — the IRS treats the eligibility itself as the offset.

Disaster Relief · IRC §165(h) · OBBBA

Disaster Casualty Loss Calculator (2026)

Estimate your Form 4684 personal casualty loss deduction after the $100 per-event and 10%-of-AGI floors ($500 and no 10% floor for qualified disaster losses on 2025 and 2026 returns, P.L. 119-108). Reflects the OBBBA change that lets state-declared disasters qualify starting tax year 2026.

IRS-Sourced

Updated August 24, 2026Reviewed for 2026 tax yearIRS-sourced

NEW FOR 2026: state-declared disasters now qualify

From 2018–2025, only FEDERALLY declared disasters qualified. OBBBA (P.L. 119-21) makes the disaster limitation permanent but broadens it — a natural catastrophe (hurricane, tornado, storm, earthquake) or fire / flood / explosion now qualifies too when the governor (or D.C. mayor) and the Treasury Secretary both determine the damage is severe enough. A loss not tied to a declared disaster (an ordinary house fire, car accident or theft) is still not deductible.

Casualty losses are only deductible if you itemize on Schedule A (Form 4684). If your total itemized deductions are below the standard deduction, this deduction has no effect.

How is a personal casualty loss deduction calculated in 2026?

Answer the disaster questions for each event to see a deduction. Under §165(h)(5)(A), a personal casualty loss is deductible only to the extent it is attributable to a federally declared disaster or, from tax year 2026, a State declared disaster; an ordinary house fire, car accident or theft gives $0.

Only losses from a declared disaster count; others are $0 (§165(h)(5)(A))
Loss per event = min(FMV decline, adjusted basis) − reimbursement
$100 subtracted PER EVENT (not per item); $500 for a qualified disaster loss
Combined loss then reduced by 10% of AGI; qualified disaster losses have no 10% floor
Itemizing required, except for qualified disaster losses, which can be added to the standard deduction
Qualified disaster loss (2025 and 2026 returns, P.L. 119-108): a Presidential major disaster whose incident period began Dec 28, 2019 – Dec 31, 2026
2026: federal OR state-declared disasters both qualify

Source:IRS Form 4684 / Publication 547 / IRC §165(h)

Your AGI

Tax year

Adjusted Gross Income

Casualty events

One event = one $100 reduction. Two storms in the same year count as two events.

Event 1

Loss amount (lesser of FMV decline or basis)

Insurance / other reimbursement

What caused this loss?

State declared means the governor (or D.C. mayor) and the Treasury Secretary both determined the damage is severe enough (§165(h)(5)(C)); a state proclamation alone does not establish it.

Deduction waterfall

Event 1

Loss$30,000

− Reimbursement$5,000

− $100 event floor$100

Contribution—

Answer the disaster question for this event.

Combined after $100 floors (qualifying events)$0

− 10% of AGI ($80,000)$8,000

Estimated Schedule A deduction

Answer the disaster question to see a deduction.

Report on Form 4684, then carry to Schedule A Line 15 (a net qualified disaster loss goes on line 16). Keep photos, insurance correspondence, and your federal/state declaration reference with your records.

Related tools & guides

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Sources & References

Primary references used for this content

Form 4684

About Form 4684, Casualties and Thefts

IRS form and instructions

View on irs.gov

Publication 547

Casualties, Disasters, and Thefts

Full IRS guidance

View on irs.gov

NATP

Casualty and theft loss deductions after OBBBA (2026)

Practitioner analysis of the OBBBA change

View on natptax.com

✓3 primary sources; links re-checked on a weekly rotation by the source watcher

Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.