Mortgage interest is only worth something at tax time if all your itemised deductions together beat the standard deduction. For a great many buyers they do not, and the tax saving people were promised turns out to be zero. Put your figures in and see which side of that line you are on.
Only the part of the year you own the home counts in the first year.
Points paid to buy down the rate on a home you are purchasing are usually deductible in the year you pay them. On a refinance they are spread over the life of the loan instead.
Charitable giving, state income tax, medical costs above the threshold. These matter — they are what decides whether itemising beats the standard deduction at all.
The rate on your top slice of income, not your average rate. A deduction saves you tax at that rate.
The figure loaded here is for 2026, married filing jointly. Single and head of household are different, and all of them change every year — check yours before you rely on this.
More options
Property tax and state income tax share one capped total. The figure loaded here is for 2026, the cap has been changed by legislation more than once, and it can be reduced again at higher incomes.
Leave at zero where there is no state income tax, or where your state does not follow the federal treatment.
Tax saving in the first year
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- Mortgage interest
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- Points
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- Property tax you can deduct
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- Your other deductions
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- Itemised in total
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- Standard deduction
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- Itemising beats it by
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- Worth per month
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The Legacy Estates Group
Tax Benefits of Buying a Home
What was entered
Breakdown
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These figures are estimates for planning only. They are not a loan offer, a quote, or advice. Interest rates, taxes, insurance, and closing costs vary by lender, property, and location. Confirm every number with your lender and a licensed professional before making a decision.
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