Federal Tax Benefits of Homeownerhsip

Federal tax benefits are a big part of making homeownership affordable. Once you own your home, you can take advantage of these benefits by deducting both the Interest  portion of your monthly mortgage payment  and the property taxes that are paid to the county each year from your taxable income. These deductions lower your Federal Taxable Income which directly results in a lower Federal Tax Payment. You will see the benefit of your federal tax deductions by updating the W4 you have on file with your employer.

The calculator on this page helps you estimate the annual mortgage interest and property tax deductions for a home based on its purchase price, loan terms, and property tax rate. By providing some basic details from your previous year’s tax returns, the calculator on this page will also help you see how these deductions affect your taxable income and lower your tax payments.