Mortgage Interest Tax Deduction Calculator
See exactly how much tax you save on your mortgage interest — free, instant, no signup.
Current loan principal
From your mortgage statement
Needed to calculate your marginal tax rate — the deduction saves you more the higher your bracket.
How mortgage interest tax deductions work
When you pay interest on a mortgage, many countries let you deduct some or all of that interest from your taxable income — or claim it as a direct tax credit. This reduces the real cost of borrowing.
The key distinction: a deduction reduces your taxable income (so the saving depends on your tax bracket), while a credit directly reduces your tax bill by a fixed percentage (same benefit regardless of income).
Your effective after-tax interest rate = nominal rate × (1 − deduction rate). A 4% mortgage with a 30% deduction costs you effectively 2.8%.
Rules by country
Which countries offer the best mortgage tax benefit?
Netherlands is the most generous: full interest deduction at up to 36.97% with no cap on the interest amount. On a €400,000 mortgage at 4%, that's ~€5,915/year in tax savings.
United States gives the largest absolute numbers for high earners — at 37% marginal rate, a $1M mortgage at 5% saves $27,750/year in federal tax alone (not counting state).
Norway and Sweden offer straightforward, automatic deductions with no complex rules — especially Norway where it's pre-filled in your tax return.
Italy is the weakest: the 19% credit is capped at €4,000 interest, so the maximum annual saving is just €760 regardless of your loan size or income.
Frequently asked questions
Does the deduction apply to second homes?
In most countries, the deduction is limited to your primary residence. Norway is an exception — all loans secured against property qualify. Sweden also applies to any home loan.
What's the difference between a deduction and a credit?
A deduction reduces your taxable income — so the saving depends on your tax bracket (higher earners save more). A credit directly reduces your tax bill by a fixed percentage — everyone gets the same saving regardless of income. Italy uses a credit; the Netherlands, US, Norway, Sweden, and Denmark use deductions.
Is this calculator free?
Yes, completely free — no account, no hidden costs. BeastyTax is a free tax estimation tool.
How accurate is this calculator?
The deduction rates and rules are based on official 2024/2025 tax regulations. Results are estimates. The US calculation uses actual federal tax brackets. Consult a tax advisor for your specific situation.