Homeowner Tax Savings Estimator
What owning could save you at tax time
Mortgage interest and property taxes are deductible — but only the amount your itemized deductions exceed the standard deduction actually lowers your tax bill. This estimator does that math honestly, using 2026 federal figures.
Your situation
All estimates. Nothing here is filed, saved, or sent anywhere.
Adjusted gross income — roughly your total income before deductions.
Interest is deductible on up to $750,000 of loan balance.
In California, typically 1.0%–1.25% of the purchase price per year.
This shares one capped bucket with your property tax, so it changes the result. Enter $0 in a no-income-tax state.
Charitable giving, and out-of-pocket medical costs above 7.5% of your income. These stack on top of your housing deductions and can push you further past the standard deduction.
Estimated federal tax savings
$0
in year one — about $0 a month
No credit pull to start · takes about 10 minutes
Talk to your tax professional Franklin Direct originates mortgages — we don't prepare taxes or give tax advice. This tool is an educational estimate built on 2026 federal figures, and everyone's return is different. Confirm anything here with a CPA or licensed tax preparer before you rely on it for a buying decision.
How this is calculated. Year-one mortgage interest comes from a standard 30-year amortization. Interest is limited to the portion attributable to the first $750,000 of acquisition debt, the limit made permanent by the One Big Beautiful Bill Act; loans originated on or before December 15, 2017 may qualify for a higher $1,000,000 limit not modeled here. Property and state/local income taxes share the 2026 SALT cap of $40,400 ($20,200 married filing separately), which phases down by 30% of modified AGI above $505,000 to a $10,000 floor and is scheduled to revert to $10,000 in 2030. Standard deductions used are $32,200 married filing jointly, $16,100 single, and $24,150 head of household. Savings are computed by running your income through the 2026 federal brackets twice — once taking the standard deduction and once itemizing — and comparing the results, which is why the benefit is limited to the amount above the standard deduction rather than the full interest figure.
Not included: state income tax effects (California does not follow the federal SALT cap and has its own rules), the alternative minimum tax, deductible mortgage insurance premiums (available in 2026 but phased out entirely above $110,000 AGI), points, additional standard deductions for filers 65 and older, and any credits. Interest declines every year as the loan amortizes, so year one is the largest benefit and later years are smaller. This is an educational estimate, not tax advice, a pre-approval, or a commitment to lend.