Legal analysis: If taxpayers or their spouses use individual housing loans from commercial banks or housing accumulation funds alone or jointly to buy houses for themselves or their spouses in China, the interest expenses incurred in the first housing loan will be deducted according to the standard quota of RMB 1 000 per month in the year when the loan interest actually occurs, and the maximum deduction period will not exceed 240 months. Taxpayers can only enjoy a first home loan interest deduction. Mortgage interest tax deduction is actually the same as five insurances and one gold, which is deducted in advance when calculating individual tax. In the future, the calculation method of individual tax will be one more than the current calculation method, MINUS the special deduction fee. The calculation method of individual tax will become: tax payable, salary, five insurances and one gold, mortgage interest and other special deductions, tax amount, taxable income * tax rate-quick deduction.

Legal basis: Interim Measures for Special Additional Deduction of Individual Income Tax

Article 2 The special additional deductions for individual income tax as mentioned in these Measures refer to 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 individual income tax law.

Article 3 The special additional deduction of individual income tax shall follow the principles of fairness, reasonableness, benefiting people's livelihood and simplicity.

Article 4 According to the changes of people's livelihood expenditures such as education, medical care, housing and pension, the scope and standard of special additional deduction shall be adjusted in a timely manner.