Mortgage Tax Deduction Calculator
Calculate your potential tax savings from mortgage interest deductions and see if itemizing makes sense for you.
Maximize Your Tax Savings
Understand how mortgage interest deduction can reduce your tax bill
Current loan balance (max $750,000 eligible)
Annual mortgage interest rate
Remaining years on mortgage
Yearly property tax amount
Annual state/local taxes paid
Charity, medical (optional)
Your marginal federal tax rate
Recommendation: Itemize Your Deductions
Your itemized deductions exceed the standard deduction
Save $0 more by itemizing
Annual Tax Savings
$0
If itemizing deductions
Mortgage Interest
$0
Year 1 deductible interest
SALT Deduction
$0
Property + state tax (capped)
Effective Rate Reduction
0%
Lower effective mortgage rate
Standard vs Itemized Deduction Comparison
Standard Deduction
$29.200
Your Itemized Deductions
$0
Recommended
Deduction Breakdown
Mortgage Interest (Year 1)
$0
Property Tax (SALT)
$0
State/Local Tax (SALT)
$0
SALT Cap Applied
$0
Other Deductions
$0
Total Itemized
$0
5-Year Interest Deduction Projection
| Year | Interest Paid | Principal Paid | Remaining Balance | Tax Savings | Cumulative Savings |
|---|
Understanding Mortgage Tax Deductions
Mortgage Interest Deduction
You can deduct interest paid on mortgage debt up to $750,000 ($375,000 if married filing separately). This applies to loans for your primary home and one additional residence. Interest on home equity loans is only deductible if used to buy, build, or improve your home.
SALT Deduction Cap
- Property taxes and state/local income taxes are capped at $10,000 total
- $5,000 cap if married filing separately
- This limit applies through 2025 tax year
- Choose between state income tax OR sales tax deduction
2024 Standard Deductions
- Single: $14,600
- Married Filing Jointly: $29,200
- Married Filing Separately: $14,600
- Head of Household: $21,900
When to Itemize
- Itemize when total deductions exceed standard deduction
- High-cost areas often benefit from itemizing
- Early mortgage years have higher interest
- Review annually as interest decreases over time