finance calculator
Mortgage Deductibility After Tax Cut
Estimate whether mortgage interest actually provides tax savings after the larger standard deduction introduced by tax cuts.
Results
- Total itemized deductions
- $20,000
- Deduction used (higher of standard/itemized)
- $27,700
- Tax savings from deduction
- $6,094
- Benefit attributable to mortgage interest
- $0
How to use this calculator
- Enter your mortgage interest paid for the year.
- Enter other itemized deductions and the standard deduction for your filing status.
- We show itemized vs standard, the deduction used, total tax savings, and the portion attributable to mortgage interest.
Inputs explained
- Standard deduction
- Use the standard deduction for your filing status/year.
- Marginal tax rate
- Top bracket rate to estimate tax savings from deductions.
How it works
Itemized total = mortgage interest + other itemized deductions.
We compare itemized total to the standard deduction and take the higher as the deduction used.
Tax savings = deduction used × marginal tax rate. The incremental interest benefit is calculated as mortgage interest × marginal rate if you’re itemizing; otherwise, only the excess above the standard deduction counts.
When to use it
- Checking if mortgage interest still provides a tax benefit under higher standard deductions.
- Illustrating how itemizing vs standard affects tax savings.
- Estimating whether buying points/interest has any tax value for you.
Tips & cautions
- If itemized deductions are below the standard deduction, mortgage interest may provide little to no benefit.
- State tax treatment is not modeled here; this is a federal-focused estimate.
- Use your actual marginal rate; effective rates will differ.
- Simplified; does not handle AMT, SALT cap specifics, or filing status changes.
- Assumes marginal rate applies to all deductible amounts.
Deep dive
See if your mortgage interest still yields tax savings after the larger standard deduction by comparing itemized vs standard.
Enter mortgage interest, other itemized deductions, and tax rate to estimate the real tax benefit of itemizing.
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