Mortgage interest deduction means that housing loan interest can be deducted from the taxable amount of personal income tax before tax, and then personal income tax is calculated and collected.

according to the calculation of taxable income in article 6 of the individual income tax law of the people's Republic of China:

(1) the comprehensive income of individual residents, after deducting expenses of 6, yuan from the income in each tax year and the balance after special deduction, special additional deduction and other deductions determined according to law, is taxable income.

(2) For the income from wages and salaries of non-resident individuals, the taxable income shall be the balance of the monthly income after deducting expenses of 5, yuan; Income from remuneration for labor services, remuneration for manuscripts and royalties shall be taxable.

(3) The taxable income is the balance of the total income in each tax year after deducting costs, expenses and losses.

(4) If the income from property leasing does not exceed 4, yuan each time, the expenses will be reduced by 8 yuan; If it is more than 4, yuan, 2% of the expenses shall be deducted, and the balance shall be taxable income.

(5) The taxable income shall be the balance of the income from the transfer of property after deducting the original value of the property and reasonable expenses.

(6) For interest, dividends, bonus income and accidental income, the taxable income shall be the amount of each income.

income from remuneration for labor services, remuneration for manuscripts and royalties shall be the balance of income after deducting 2% of expenses. The amount of income from remuneration shall be reduced by 7%.

individuals donate their income to public welfare charities such as education, poverty alleviation, and poverty alleviation. The part of the donation that does not exceed 3% of the taxable income declared by taxpayers can be deducted from their taxable income; If the State Council stipulates that donations to charitable causes shall be deducted in full before tax, such provisions shall prevail.

the special deduction specified in item 1 of the first paragraph of this article includes social insurance premiums such as basic old-age insurance, basic medical insurance and unemployment insurance and housing accumulation fund paid by individual residents in accordance with the scope and standards stipulated by the state; Special additional deductions, including children's education, continuing education, serious illness medical care, housing loan interest or housing rent, support for the elderly and other expenses, the specific scope, standards and implementation steps are determined by the State Council, and reported to the NPC Standing Committee for the record.

Extended information:

Interim Measures for Special Additional Deductions for Personal Income Tax Article 2 The special additional deductions for personal income tax mentioned in these Measures refer to the six special additional deductions for children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and support for the elderly as stipulated in the personal income tax law.

Article 14 If a taxpayer or his spouse uses a personal housing loan from a commercial bank or housing accumulation fund alone or together to purchase a house in China for himself or his spouse, the interest expenses incurred on the first housing loan shall be deducted according to the monthly 1 yuan standard in the year when the loan interest actually occurs, and the maximum deduction period shall not exceed 24 months.

Taxpayers can only enjoy the interest deduction of the first home loan once. The term "first home loan" as mentioned in these Measures refers to the housing loan that enjoys the interest rate of the first home loan when buying a house.

Baidu Encyclopedia-Individual Income Tax Law of the People's Republic of China