Personal income tax deduction of housing loan means that the interest of housing loan can be deducted before calculating the taxable income of personal income tax. The scope of deduction is the interest expense of the first housing loan incurred by the taxpayer or his or her spouse alone or together with the personal housing loan or housing accumulation fund of a commercial bank to purchase housing for himself or his or her spouse in China. Interim Measures for Special Additional Deduction of Personal Income Tax Article 14 If a taxpayer or his spouse uses a personal housing loan from a commercial bank or housing accumulation fund alone or jointly to buy a house for himself or his spouse in China, the interest expenses incurred in the first housing loan shall be deducted according to the standard quota of 1 000 yuan per month in the year when the loan interest actually occurs, and the maximum deduction period shall not exceed 240 months. Taxpayers can only enjoy a first home loan interest deduction. 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.