Cash Out Refinance Taxes in Arizona 2026: Is the Money Taxable and Is the Interest Deductible?

Published on: 08/28/2026

Cash out refinance money is not taxable income in Arizona, but the interest is only deductible if you use the cash to buy, build, or substantially improve the home. IRS rules, the $750,000 cap, and what to keep. Pillar Mortgage Group.

Arizona Mortgage and Home Selling Guides

Straight answers on buying, refinancing, and selling a home in Scottsdale, Phoenix, and across Arizona, from Blake Hermann, Director of Lending at Pillar Mortgage Group (NMLS #2271358).

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