Mortgage Tax Calculator
This mortgage tax calculator uses the current 2026 rules: a $750,000 mortgage interest deduction limit and the newly raised $40,400 SALT cap on property and state taxes, including the income-based phase-out for higher earners. It tells you whether itemizing actually beats the standard deduction on your specific numbers, and roughly how much that’s worth. For your full monthly payment, start with the full Mortgage Calculator.
Skip straight to the calculator ↓Your Filing Status & Income
Your Mortgage, Property Tax & Other Deductions
Itemize or Take the Standard Deduction?
Enter your details above to see whether itemizing beats the standard deduction.
Deduction Breakdown
| Item | Amount |
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The Biggest Homeowner Tax Change in Years Just Took Effect
For tax years 2018 through 2025, the SALT deduction, the write-off for property tax plus state income or sales tax, was capped at a flat $10,000 no matter your income or where you lived. That single change quietly pushed a lot of homeowners in higher-tax states out of itemizing altogether. Starting with the 2026 tax year, under the One Big Beautiful Bill Act, that cap jumped to $40,400 for most filers, with a gradual phase-down for households with MAGI above $505,000. This calculator uses that current figure, not the outdated $10,000 number still showing up on a lot of older calculators and articles online.
How the Mortgage Interest Deduction Actually Works
You can deduct interest paid on mortgage debt used to buy, build, or substantially improve your home, up to $750,000 of total acquisition debt for loans taken out on or after December 16, 2017 (half that if you’re married filing separately). Mortgages from before that date keep the older, higher $1,000,000 limit. If your loan balance exceeds the applicable limit, only the proportional share of your interest tied to the deductible portion of the debt actually counts, which is exactly what the calculator above computes rather than simply capping the dollar amount.
PMI Is Now Deductible, Starting in 2026
Private mortgage insurance premiums had bounced on and off the deductible list in past tax years. Starting with tax year 2026, PMI is treated as deductible mortgage interest again, subject to the same acquisition debt limits described above. If you’re paying PMI because your down payment was under 20%, that’s real money worth including in the calculation, which the PMI field above adds directly into your deductible interest total.
How the New SALT Cap and Its Phase-Out Work
The $40,400 SALT cap applies in full as long as your MAGI is at or below $505,000 (roughly half that for married filing separately). Above that threshold, the cap shrinks by 30 cents for every dollar of income over the limit, but it can never fall below a $10,000 floor ($5,000 if married filing separately), meaning even very high earners keep at least the old cap amount. Most homeowners, even in expensive metro areas, fall comfortably under the phase-out threshold and get the full $40,400.
Why Itemizing Isn’t Automatic Just Because You Own a Home
Owning a home doesn’t automatically mean itemizing beats the standard deduction. For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and roughly $24,150 for head of household. If your mortgage interest, SALT, and other itemized deductions combined don’t clear that bar, you’re better off taking the standard deduction, full stop, regardless of how much you paid in property tax. The comparison above runs that math directly on your numbers rather than assuming homeownership guarantees a tax benefit.
Frequently Asked Questions
What is the SALT deduction cap for 2026?
$40,400 for most filers, up from the prior $10,000 flat cap, under the One Big Beautiful Bill Act. It phases down for households with MAGI above roughly $505,000, but never falls below a $10,000 floor.
What is the mortgage interest deduction limit?
Interest is deductible on up to $750,000 of acquisition debt for loans from December 16, 2017 onward ($375,000 if married filing separately). Older loans keep a $1,000,000 limit ($500,000 if married filing separately).
Is PMI tax deductible in 2026?
Yes. Private mortgage insurance premiums are treated as deductible mortgage interest starting with tax year 2026, subject to the same acquisition debt limits as regular mortgage interest.
Should I itemize or take the standard deduction?
Itemize only if your total Schedule A deductions, mortgage interest, capped SALT, charitable giving, and other eligible items, exceed your standard deduction for your filing status. Otherwise the standard deduction saves you more.
Does everyone get the full $40,400 SALT cap?
No. It phases down for households with modified adjusted gross income above roughly $505,000 (about half that for married filing separately), reduced by 30 cents per dollar over the threshold, down to a $10,000 floor.
What counts toward the SALT deduction?
Property taxes paid on your home, plus either your state and local income taxes or state and local sales taxes, whichever you choose, combined and subject to the single overall cap.
Does this calculator file my taxes for me?
No, this is a planning estimate only. Your actual return should be prepared using your official Form 1098 and other tax documents, ideally with a tax professional for anything beyond a straightforward return.
References
- Internal Revenue Service, Publication 936, Home Mortgage Interest Deduction – irs.gov/publications/p936
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
Related DexoCalc Tools
This mortgage tax calculator is one piece of the full mortgage planning toolkit on DexoCalc.
State Mortgage Calculators
Want your actual property tax figure for the SALT field above, based on where you’re buying? These calculators use real local tax data:
This calculator provides estimates for educational purposes only and is not tax advice, a tax return, or a substitute for a licensed tax professional. Federal deduction limits reflect 2026 tax year rules under the One Big Beautiful Bill Act at time of writing and are subject to IRS guidance and future legislative change.