Embodiments of the present disclosure relate to performing noise reduction on an input image by first filtering the input image based on coarse noise models of pixels and then subsequently filtering the filtered input image based on finer noise models. The finer noise models use the same or more number of neighboring pixels than the coarse noise filters. The first filtering and subsequent filtering of a pixel in the input image use Mahalanobis distances between the pixel and its neighboring pixels. By performing iterations of filtering using more refined noise models, the noise reduction in the input image can be performed more efficiently and effectively.