93195 t1_jacq6si wrote on February 28, 2023 at 2:28 PM

You have to itemize.

The SALT deduction (property tax, sales tax, state income tax, etc) is capped at $10K. Mortgage interest is not. With interest rates ticking up and for expensive homes, yes, it’s possible that along with SALT (and other itemized deductions) you could exceed the standard deduction of $13,850 (single) or $27,700 (joint). There is no savings until your itemized deductions exceed those levels.

TLDR, it depends. For most upper middle class or lower earners locked into a low rate mortgage, no. In your case, maybe.

vettewiz t1_jacqp5n wrote on February 28, 2023 at 2:32 PM

Another point here is that self employed folks get a better advantage from home ownership in most states due to SALT work around. Unsure if OP is, but with that income it wouldn’t surprise me.

Accomplished-Can-912 OP t1_jact4he wrote on February 28, 2023 at 2:50 PM

I am looking at houses averaging around 1 million in price .I believe interest should exceed the standard deduction

93195 t1_jactm2j wrote on February 28, 2023 at 2:53 PM

Mortgage interest on the first $750K of the loan is deductible. So yes, if you borrowed $750K at 6%, yes, that and your other itemized deductions would save you money on taxes as compared to just taking the standard deduction.