Is Your Mortgage Interest Really Deductible?

Updated for 2022/2023 numbers

Congress often debates whether to reduce the highly prized mortgage interest deduction which every realtor will tell you saves you a ton of money. The reality is that for many people with loan balances smaller than $200,000 and with today's interest rates this will really not effect them very much. People have an inflated perception on how much they are saving from the deduction.

The 2017 tax bill increased the standard deductions substantially which further reduced the number of people itemizing. (In 2019, 87% of Americans chose the standard deduction.) This calculator calculates how much federal income tax you save now from your itemized deductions (mortgage interest, property tax, charitable contributions, etc.) compared with the standard deduction for your household. I have tried to include numbers from the latest IRS numbers for 2022 and 2023.

Your Adjusted Gross Income: $
Your Annual Mortgage Loan Interest: $
Your Annual Equity Loan Interest: $
Your Mortgage Point Interest: $
Your "Acquisition Indebtedness": $
Mortgage Obtained Before Dec 15, 2017?
Your real estate property tax: $
State and local income tax: $
Personal Property Tax: $
Charitable Contributions: $
Deductible Medical Expenses: $
Miscellaneous Deductions: $
Filing Status: Married Filing Jointly - Single
Head of Household - Married Filing Separately
Standard Deduction: $ $
Your State Income Tax Rate: %
20222023
Deductible Loan Interest:$0.000.00
Deductible Taxes:$0.000.00
Charitable Contributions:$0.000.00
Total Itemized Deductions:$0.000.00
Taxable Income w/ Standard Deduction :$-24,800.00-27,700.00
Taxable Income w/ Itemized Deductions:$0.000.00
Reduction by Itemizing:NOTHINGNOTHING
Your Tax Bracket 10 % 10 %
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