Mortgage Interest Deduction in New York
State income tax rate
10.9%
Itemized deductions allowed
✅ Yes
State-Level Mortgage Interest Deduction
New York has a top rate of 10.9% and conforms to federal itemized deductions. NYC residents get an additional deduction on their city return, making the combined benefit one of the highest in the country.
Combined Federal + New York 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 York (10.9% rate): $1,962
- Total estimated savings: $5,922
These are estimates based on a 22% federal bracket. Your actual savings depend on your specific tax situation.
Frequently Asked Questions
Keep reading
CalculatorMortgage Interest Deduction CalculatorRun your own numbers with New York rates applied.GuideMortgage Interest Deduction by StateHow the federal rules interact with each state's conformity and limits.GuideIs a Home Equity Loan Tax Deductible?The 2018 rules, and the use test that decides whether your interest qualifies.GuideMortgage Points: What They Cost and When They Pay OffPoints are prepaid interest, and on a purchase they can be deducted in the year paid.
Rate reflects the top marginal state income tax rate for 2026 per the Tax Foundation. Whether a deduction helps depends on your full return, including whether itemizing beats the federal standard deduction. General information, not tax advice.