Mortgage Tax Deduction Estimator
Estimates the federal tax saving from mortgage interest and property tax — measured against the standard deduction, the mortgage interest cap, and the SALT cap, so the number is one you can rely on.
Educational estimate — not tax advice
This tool estimates potential federal tax benefits for illustrative purposes only. Tax laws are complex and individual circumstances vary widely. Consult a qualified tax professional or CPA before making financial decisions based on this output.
Your Tax Profile
Gross income before deductions. Used to determine your marginal tax bracket.
Mortgage & Property
Interest deductible on loan balances up to $750,000.
Used to estimate your annual mortgage interest paid.
SALT deduction capped at $10,000 per year.
Deduction Method
To benefit from itemizing, your total deductions must exceed the $29,200 standard deduction for your filing status.
Estimated Annual Tax Savings
$7,068
About $589/month — your effective mortgage cost is lower by this amount.
Marginal Tax Rate
22%
2024 federal bracket
Deductible Interest
$26,125
per year (est.)
Monthly Discount
$589
effective savings
Deduction Breakdown
Estimated annual mortgage interest
Balance × rate — first-year approximation
Annual property tax paid
Total deductible from mortgage
Mortgage interest + property tax
Standard deduction (2024)
For Married Filing Jointly
Marginal tax rate
Estimated annual tax savings
$32,125 × 22%
Estimated monthly tax savings
Annual ÷ 12
What This Means for Your Payment
If you itemize and your total deductions exceed $29,200, the government effectively subsidizes your mortgage interest. Your monthly tax refund (spread over the year) of $589 reduces the true after-tax cost of your mortgage.
Est. annual interest paid
$26,125
After-tax interest cost
$19,058
Assumptions & Limitations
- •Uses 2024 federal income tax brackets and standard deduction amounts.
- •Mortgage interest is estimated as balance × rate (first-year, maximum estimate). Actual interest decreases each year as you pay down principal.
- •Assumes you have no other itemized deductions (charity, medical, etc.). If you do, your actual savings may be higher.
- •SALT deduction is capped at $10,000/year ($5,000 for Married Filing Separately) per current law.
- •Mortgage interest is fully deductible on balances up to $750,000 ($375,000 for MFS).
- •State income taxes are not modeled. Some states offer additional deductions.
- •Does not account for the Alternative Minimum Tax (AMT), which can reduce or eliminate this benefit.
Educational estimate — not tax advice
The short answer
Is mortgage interest still tax deductible?
Yes, but far fewer people benefit than assume they do. Interest is deductible on up to $750,000 of mortgage debt and property tax falls under the $10,000 SALT cap — and you only gain if those combined itemized deductions exceed the standard deduction ($14,600 single / $29,200 married filing jointly for 2024). Below that you take the standard deduction and the mortgage saves you nothing at tax time.
Run your numbers with us
A calculator gives you an estimate. A conversation gives you the number you can actually plan around — David and Bri will walk you through it down to the decimal.