When the actual tax paid in the previous year is less than the special deduction for mortgage, the mortgage tax rebate is equal to the actual personal income tax paid; When the actual tax paid in the previous year is greater than the special deduction of mortgage, the mortgage tax rebate is equal to the special deduction of mortgage.
Calculation method of special deduction for mortgage:
1, determine the deduction standard: determine the special deduction standard for personal mortgage interest according to relevant policies and regulations;
2. Calculate the deduction: compare the actually paid mortgage interest with the deduction standard, and take the smaller value as the deduction;
3. Tax accounting: calculate the total personal income tax payable in combination with personal annual income and tax rate;
4. Determine the tax amount after deduction: deduct the special deduction of mortgage interest from the total personal income tax payable to get the tax amount after deduction.
5. Calculation of tax refund: if the actual personal income tax paid exceeds the taxable amount after deduction, the excess is the tax refund. If the actual amount of individual income tax paid is less than or equal to the taxable amount after deduction, no tax refund will be granted.
To sum up, the amount of mortgage tax rebate depends on the actual tax paid in the previous year and the amount of special deduction for mortgage. When it is less than the deduction, the tax refund is equal to personal income tax, and when it is greater than the deduction, the tax refund is equal to the deduction.
Legal basis:
Detailed Rules for the Implementation of People's Republic of China (PRC) Tax Collection and Management Law
Article 78
If the tax authorities find that taxpayers pay more taxes, they shall go through the formalities of tax refund within 10 days from the date of discovery; If a taxpayer finds that he has overpaid and asked for a tax refund, the tax authorities shall verify the tax refund procedures within 30 days from the date of receiving the taxpayer's application for tax refund. The tax refund for overpayment of taxes plus interest on bank deposits in the same period as stipulated in Article 51 of the Tax Administration Law does not include settlement tax refund, export tax refund and various tax reductions and exemptions. The tax refund interest shall be calculated according to the deposit interest rate stipulated by the People's Bank of China on the day when the tax authorities handle the tax refund formalities.