Mortgage tax deduction means that when customers with mortgages need to deduct personal income tax, they can deduct mortgage interest as pre-tax deduction first, and then calculate the personal income tax of the remaining income.
Personal income tax housing loan deduction conditions
1. Taxpayers or their spouses use individual housing loans or housing accumulation funds of commercial banks individually or jointly to purchase housing for themselves or their spouses in China;
2. Interest expense of the first home loan;
3. The year when the loan interest actually occurs.
As can be seen from the above, the monthly housing loan can be reduced by 1000, and the annual tax can be reduced by 12000.
Legal basis:
Interim Measures for Special Additional Deduction of Individual Income Tax
Article 14
If taxpayers or their spouses use individual housing loans or housing accumulation funds of commercial banks alone or jointly to purchase housing for themselves or their spouses 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.