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Mortgage Tax Deduction Calculator

Estimate your mortgage interest tax deduction from your year-end loan balance. Enter the balance and a deduction rate (e.g. 0.7%) to instantly see the yearly credit, with optional eligible-balance cap and deduction period.

Input

$
%
$

The deductible balance is the smaller of this cap and the year-end balance

yrs

Result

Yearly deduction (rate 0.7%)

$210,000

Deductible balance

$30,000,000

Total over 13 years (estimate)

$2,730,000

How it works

  • A mortgage tax deduction (housing loan credit) lets you deduct a percentage of your year-end loan balance from your taxes. This tool estimates the yearly deduction as year-end balance × deduction rate (commonly 0.7%).
  • If you enter an eligible-balance cap, the deductible balance is the smaller of the year-end balance and the cap. Caps typically depend on the home type and the year you moved in. Leave it blank to apply no cap.
  • Deduction periods are commonly 13 years for newly built homes and 10 years for existing (used) homes. The actual period, rate, and cap vary by move-in year and home category, so check the current rules.
  • The deduction is rounded down to the nearest 100 in this tool. The period total is yearly deduction × number of years — a rough upper-bound estimate that assumes a constant balance; in reality the balance shrinks each year, so the real total is lower.
  • The amount actually credited is capped by your income tax for the year (with a limited carryover to residence tax). If your tax is smaller than the deduction, you won't get the full amount back.
  • Results are estimates only. Exact amounts and eligibility change with tax reforms — consult a tax office or a tax professional when filing.

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