Mortgage interest tax deduction calculator

What is the mortgage interest tax deduction?

The mortgage interest tax deduction allows taxpayers to write off the interest paid on mortgages on their federal tax return, up to certain limits, provided they itemize their deductions. Many homeowners don't have enough itemized deductions, even when they include their mortgage interest, to outweigh the standard deduction, but if you do, and plan to itemize this year, our calculator can help you estimate your tax savings.

For tax year 2024, you can deduct the interest on up to $750,000 of mortgage debt on a primary residence or second home (provided it meets the IRS standards for a “qualified home"); or the interest on up to $375,000 of mortgage debt if married filing separately. The deduction also applies to home equity loans if they were used to buy, build or renovate a home. 

Changes to the mortgage interest tax deduction rules

The mortgage interest tax deduction most recently changed with the Tax Cuts and Jobs Act of 2017. For mortgages obtained after Dec. 15, 2017, you can deduct interest on mortgage debt up to $750,000, down from a limit of $1 million for mortgages obtained before that date. Those married filing separately can only deduct interest on up to $375,000 of qualified mortgage debt for loans obtained after  Dec. 15, 2017, down from $500,000 for loans obtained before then.

The new rules also ended the deduction for interest on home equity lines of credit (HELOCs) and home equity loans, unless the debt was used to buy or build a home, or pay for home improvements.