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Buying a house? How the GOP tax plan changes your mortgage interest deduction

By Jon Schleuss
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If you’ve already got a mortgage, things won’t change. You can still deduct the interest you pay on mortgages up to $1 million.

But if you’re planning to get a new mortgage, you may not be able to deduct as much. The latest tax plan voted on by House Republicans would cap the mortgage interest deduction on new loans at $750,000.

That could deliver a blow to some Californians. Since the start of this year, about 12.5% of all new mortgages in Los Angeles County were more than $750,000.

So, how much would you be able to deduct if you got a new loan under this proposed law?

UPDATES:

Updated on Dec. 19: This calculator was updated to reflect the new limit of $750,000. Several California Republicans benefited from this change.

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Jon Schleuss

Former graphics and data journalist Jon Schleuss left the Los Angeles Times in December 2019 when he was elected president of the NewsGuild, which represents about 20,000 journalists and other workers in the United States and Canada. Schleuss previously taught journalism students how to code at the University of Southern California. An Arkansas native, he graduated from the University of Arkansas in 2013.

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