Mortgage Interest Deduction in California
State income tax rate
13.3%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
California conforms to federal itemized deductions with a top rate of 13.3%, making the combined federal+state deduction one of the most valuable in the country for high-income homeowners. Note: California uses a 2015 IRC conformity date, so some federal TCJA changes may be handled differently.
Combined Federal + California Savings
If you paid $18,000 in mortgage interest last year and itemize on both returns, your combined tax savings would be approximately:
- Federal (22% bracket): $3,960
- California (13.3% rate): $2,394
- Total estimated savings: $6,354
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.