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Mortgage Interest Deduction vs Standard Deduction Calculator
Since 2018, most homeowners no longer benefit from the mortgage interest deduction — the standard deduction is too high. This calculator applies the 2026 SALT cap and standard-deduction amounts to show whether itemizing actually beats the standard for your numbers.
capped at $40k joint, $20k others
Better choice
Itemize
Tax savings from itemizing
$840
vs standard deduction
Total itemized
$35,000
Standard deduction
$31,500
Dollar advantage
$3,500
gap between the two
Mortgage share of itemized
52.86%
MID carrying the decision
How the math works
After the 2017 tax law, the standard deduction roughly doubled. Only about 10% of taxpayers still itemize. Mortgage interest, the $40k SALT cap (joint), and charitable giving are the three levers that push a household over the standard deduction.
A large mortgage in year one (heaviest interest) is the most common trigger. As the loan amortizes and interest shrinks, itemizing often becomes a losing proposition even if it worked early on.
How to Use
- Pick your filing status. Standard deduction for 2026: $15,750 single, $31,500 joint, $23,625 HoH.
- Enter annual mortgage interest (Form 1098) — the primary driver of itemizing in most households.
- Enter state and local tax plus property tax combined. The SALT cap is $40k for joint filers under ~$500k AGI, $20k others (estimate).
- Add charitable giving and any other itemized deductions (medical over 7.5% AGI, etc.).
- Enter marginal tax rate to size the dollar benefit of itemizing when it wins.
Frequently Asked Questions
Why did itemizing get harder after 2017?
The Tax Cuts and Jobs Act roughly doubled the standard deduction and capped SALT at $10,000. That combination made the total itemized amount smaller and the bar higher. Only ~10% of taxpayers itemize today.
What changed in 2025?
The 2025 reconciliation act expanded the SALT cap to $40,000 for joint filers with AGI under ~$500,000 (phasing out above), restoring some itemizing upside for homeowners in high-tax states.
What about 'bunching' deductions?
Paying two years of property tax in one calendar year, or using a donor-advised fund to group multi-year charitable giving, lets you itemize in one year and take the standard the next. Over two years you capture more deduction.
Does the mortgage interest deduction phase out at high incomes?
It's limited by the $750k acquisition debt cap, not by income directly. The Pease limitation that once reduced itemized deductions at high income was repealed for 2018 onward.
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Mortgage Interest Deduction Calculator
Calculate deductible home mortgage interest under the $750k acquisition debt cap and whether itemizing beats the 2026 standard deduction.
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