Mortgage Deduction 2025. The mortgage interest deduction, no matter how small, will always benefit those taxpayers who cannot claim the standard deduction (e.g., married individuals filing separately. The home mortgage interest deduction is a tax deduction that allows homeowners to deduct the interest they pay on their mortgage from their taxable income.

Bankrate provides a free mortgage tax deduction calculator and other mortgage interest calculators to help consumers figure out how much interest is tax deductible. The mortgage interest deduction is a common itemized deduction that can reduce homeowners’ taxable income by allowing them to deduct the interest paid.