The special additional deduction provisions for personal income tax on housing loan interest are as follows:
1. Deduction standard: If a taxpayer or his spouse uses a personal housing loan from a commercial bank or housing accumulation fund to buy a house for himself or his spouse in China, the interest expenses incurred from the first housing loan shall be deducted according to the standard quota of 1000 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 the interest deduction of the first home loan once.
2. The first home loan refers to the home loan that enjoys the interest rate of the first home loan when buying a house.
3. Deduction object: As agreed by both husband and wife, one of them can choose to deduct, and the specific deduction method cannot be changed within one tax year.
4. For the first home loan that occurs when the husband and wife buy houses separately before marriage, they can choose 1 house purchased after marriage, and the buyer will deduct it according to 100% of the deduction standard, or the husband and wife will deduct it according to 50% of the deduction standard. The specific deduction method cannot be changed within a tax year.
5. Required materials: Taxpayers should keep the housing loan contract and loan repayment expenditure vouchers for future reference.
6. Deduction calculation time: from the month of repayment agreed in the loan contract to the month when the loan is fully paid off or the loan contract is terminated, the longest deduction period shall not exceed 240 months.
At present, the threshold of individual tax in China is 5000 yuan, and those who earn more than 5000 yuan are obliged to pay individual tax. At present, the calculation method of individual tax is: personal income tax = taxable income (wage income-five insurances and one gold) * tax rate-quick deduction.
Mortgage interest tax deduction refers to the interest expense of the mortgage loan of the purchaser, which can be used as pre-tax deduction. Generally speaking, when calculating the monthly personal income tax payable, mortgage interest is deducted from the income tax payable such as wages and salaries, and the rest is calculated as a tax.
After the New Deal, personal income tax = payable income (wage income-five insurances and one fund-mortgage interest) * tax rate-quick deduction.
Legal basis:
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.