The special deduction for personal income tax on housing loans means that when calculating personal income tax, housing loan interest is deducted at a fixed amount of RMB 1,000 per month in the year in which the loan interest is actually incurred. Taxpayers can only enjoy one deduction for the interest on their first home loan. Upon agreement between the couple, they can choose to have it deducted by one of them, but the specific deduction method cannot be changed within a tax year.

Special additional deduction for personal income tax on housing loan interest:

1. Interim Measures for Special Additional Deduction for Personal Income Tax

2. First-home loan refers to the enjoyment of purchasing a house Home loans with first home loan rates.

3. Deduction objects: Upon agreement by both spouses, one of the spouses can choose to deduct the deduction. The specific deduction method cannot be changed within a tax year.

4. If the husband and wife purchase the first house separately before marriage, the loan interest expenses can be deducted by the buyer at 100 of the deduction standard for one of the houses purchased after marriage. Both spouses shall deduct 50% of the deduction standard for the houses they purchased respectively. The specific deduction method cannot be changed within a tax year.

5. Required materials: Taxpayers should retain housing loan contracts and loan repayment vouchers for future reference.

6. The calculation time for deduction: from the month when repayment begins as stipulated in the loan contract to the month when the loan is fully repaid or the loan contract is terminated, the deduction period shall not exceed 240 months.

Legal basis:

"Notice of the State Council on Issuing Interim Measures for Special Additional Deductions for Individual Income Tax"

Article 14 The taxpayer himself or his spouse alone or* **If you use a commercial bank or housing provident fund personal housing loan to purchase a house in China for yourself or your spouse, the interest expenses on the first housing loan incurred will be deducted at a standard fixed amount of 1,000 yuan per month in the year in which the loan interest is actually incurred. The maximum term shall not exceed 240 months. Taxpayers can only enjoy a one-time deduction for interest on their first home loan.

The term “first-home loan” as mentioned in these Measures refers to a home loan that enjoys the first-home loan interest rate for purchasing a home.