You have to spend money to save money.
According to SmartAsset, the nation’s most expensive cities offer residents the best homeownership-related tax breaks. In San Francisco, where the median home value is nearly $1 million, a two-income household can save $5,479 in federal income taxes if the family claims deductions for both mortgage interest and property taxes.
San Jose, Washington D.C., New York City, and Seattle also have high deduction savings to go along with hefty house prices.
Most homeowners, including those in metros such as Dallas, Philadelphia, Detroit, and Phoenix, don’t save any money by writing off mortgage interest, property taxes, and other expenses.
Southern homeowners may want to take the standard deduction. Based on the tax projections we made using our federal income tax calculator, we found that Charlotte is the only Southern city that saves homeowners any money when they itemize their deductions and claim both the mortgage interest deduction and the property tax deduction.