Mortgage Interest Deduction in New Jersey
State income tax rate
10.75%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
New Jersey has a top rate of 10.75% and conforms to federal itemized deductions. However, NJ limits the mortgage interest deduction for higher-income taxpayers. Verify current phase-out thresholds with a NJ tax professional.
Combined Federal + New Jersey 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
- New Jersey (10.75% rate): $1,935
- Total estimated savings: $5,895
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.