California Mortgage Tax Calculator
Calculate mortgage interest deductions and property tax benefits for California homeowners.
Estimate your tax savings from mortgage interest and property tax deductions. Compare with our California mortgage calculator, income tax calculator, or explore PMI costs.
Estimate your tax savings from mortgage interest and property tax deductions. Compare with our California mortgage calculator, income tax calculator, or explore PMI costs.
Last updated: June 2025
Manually verified by: Sarah L. from ManyCalcs team
Data source: IRS Publication 936, California Franchise Tax Board
Why use a Mortgage Tax Calculator?
Understanding tax benefits helps you make informed decisions about homeownership and determine the true cost of your mortgage.
Understanding tax benefits helps you make informed decisions about homeownership and determine the true cost of your mortgage.
Tax Savings Results
Enter your details to see potential tax savings from mortgage deductions.
Related Financial Tools
California Mortgage Tax Deductions Guide
Mortgage Interest Deduction
Federal Deduction:
- Loan Limit: Up to $750,000 (homes purchased after 12/15/2017)
- Legacy Loans: Up to $1,000,000 (homes purchased before 12/16/2017)
- Second Homes: Combined limit applies to primary + secondary residence
- Home Equity: Interest deductible if used to buy, build, or improve home
California State:
- No Limit: California follows pre-2018 federal rules
- Full Deduction: All mortgage interest generally deductible
- Home Equity: Interest deductible regardless of use
Property Tax Deduction
Federal SALT Limitation:
- $10,000 Cap: Combined state/local taxes (including property tax)
- Includes: Property tax + state income tax OR sales tax
- Married Filing Separately: $5,000 limit each
- Strategy: May benefit from timing payments
California State:
- No Limit: Full property tax deduction allowed
- All Properties: Primary, secondary, rental properties
- Special Assessments: Some local assessments deductible
2025 Tax Brackets (California)
Federal Tax Brackets 2025
| Rate | Single | Married Joint |
|---|---|---|
| 10% | $0 - $11,000 | $0 - $22,000 |
| 12% | $11,001 - $44,725 | $22,001 - $89,450 |
| 22% | $44,726 - $95,375 | $89,451 - $190,750 |
| 24% | $95,376 - $182,050 | $190,751 - $364,200 |
| 32% | $182,051 - $231,250 | $364,201 - $462,500 |
| 35% | $231,251 - $578,125 | $462,501 - $693,750 |
| 37% | $578,126+ | $693,751+ |
California Tax Brackets 2025
| Rate | Single | Married Joint |
|---|---|---|
| 1% | $0 - $10,099 | $0 - $20,198 |
| 2% | $10,100 - $23,942 | $20,199 - $47,884 |
| 4% | $23,943 - $37,788 | $47,885 - $75,576 |
| 6% | $37,789 - $52,455 | $75,577 - $104,910 |
| 8% | $52,456 - $66,295 | $104,911 - $132,590 |
| 9.3% | $66,296 - $338,639 | $132,591 - $677,278 |
| 10.3% | $338,640 - $406,364 | $677,279 - $812,728 |
| 11.3% | $406,365 - $677,278 | $812,729 - $1,354,556 |
| 12.3% | $677,279+ | $1,354,557+ |
Note: Additional 1% Mental Health Tax on income over $1M
Itemized vs. Standard Deduction Analysis
2025 Standard Deductions
Federal Standard Deduction:
- Single: $14,600
- Married Filing Jointly: $29,200
- Married Filing Separately: $14,600
- Head of Household: $21,900
California Standard Deduction:
- Single: $5,202
- Married Filing Jointly: $10,404
- Married Filing Separately: $5,202
- Head of Household: $10,404
When to Itemize
Itemize When Your Total Exceeds:
- Federal: Standard deduction amount
- California: Much lower threshold makes itemizing more likely
- Strategy: You can itemize on state return even if taking standard on federal
Common Itemized Deductions:
- Mortgage interest
- Property taxes (subject to SALT limit federally)
- State income taxes
- Charitable contributions
- Medical expenses (over 7.5% AGI)
Tax Planning Strategies for California Homeowners
Timing Strategies
- Property Tax Payments: Consider timing payments to maximize SALT deduction
- Prepayment: Pay January property tax in December for additional deduction
- Bunching: Bunch charitable contributions in alternating years
- State Tax Planning: Time estimated payments strategically
- Home Improvements: Track costs that increase basis
SALT Cap Strategies
- Federal Limitation: $10,000 combined state/local tax limit
- California Benefit: No SALT limit on state return
- Payment Timing: Coordinate property tax and state income tax payments
- Charitable Workaround: Consider charitable tax credit programs
- Business Deductions: Rental property taxes not subject to SALT limit
Record Keeping
- Mortgage Statements: Keep annual Form 1098 from lender
- Property Tax: Save county tax bills and payment receipts
- Home Improvements: Track capital improvements that increase basis
- Points Paid: Document mortgage origination points
- Refinancing: Track unamortized points from previous loans
Frequently Asked Questions
Federal: You can deduct interest on up to $750,000 of mortgage debt (or $1M for homes purchased before 12/16/2017). California: No limit - you can deduct all mortgage interest on your state return, following the pre-2018 federal rules. This makes California more generous than federal rules for high-value homes.
The federal SALT (State and Local Tax) deduction is capped at $10,000 per year, covering property taxes plus state income taxes combined. However, California has no SALT limit on state returns. Given California's high property taxes and state income taxes, many homeowners hit this federal limit, making the California state deduction particularly valuable.
You should itemize if your total itemized deductions exceed the standard deduction. For 2025, federal standard deductions are $14,600 (single) and $29,200 (married joint). California standard deductions are much lower at $5,202 (single) and $10,404 (married joint), making itemizing more beneficial on state returns. You can choose different methods for federal vs. state returns.
PMI deductibility varies by year and income. For 2025, check current IRS rules as PMI deductibility has been extended and expired multiple times. Mortgage points are generally deductible in the year paid for home purchases, or amortized over the loan term for refinances. HOA fees and homeowner's insurance are generally not deductible unless for a rental property.
Federal: Home equity interest is deductible only if the loan proceeds are used to buy, build, or substantially improve the home securing the loan. The combined mortgage debt limit still applies ($750,000). California: Generally follows pre-2018 federal rules, allowing deduction of home equity interest regardless of how the proceeds are used, subject to the value of the home.