How Tax Benefits Add Up
Take a look at the total benefit of the mortgage interest, mortgage points, and property tax deductions. This chart lists what you get to keep from the tax man based on your tax bracket, if you take all three of these benefits.
Tax Bracket | You Keep |
15% | $2,242 |
25% | $3,737 |
28% | $4,185 |
33% | $4,933 |
35% | $5,231 |
39.6% | $5,919 |
We calculated this using the total median deduction as reported by the IRS for each of the three benefits:
Mortgage interest | $10,129 |
Mortgage points | $509 |
Property taxes | $4,309 |
Total | $14,947* |
*The deduction isn’t how much you keep in your pocket; it’s how much you get to deduct from your income, or how much income you don’t have to pay income tax on.
So Why Should We Miss the Energy Property Tax Credit?
Because it helps the environment and the economic health of our country. Think about it:
It helps us save energy. The typical American family spends an average of about $2,000 per year on energy, and our homes consume 21% of all the energy our nation uses, according to the U.S. Environmental Protection Agency. Our homes even release more greenhouse gases than our cars.
Homeowners who spend money to improve their home efficiency are rewarded with lower energy bills, but they also help the country by cutting energy demand (and therefore costs), reducing pollution, and creating construction jobs.