--- title: What are the Most Common Tax Benefits Available to Homeowners? description: Buying a new home is a pretty sizable expense. However, when you take into account these tax benefits, there are still plenty of ways to make a lot of savings. image: https://blog.sdnyrealty.com/hubfs/Blog_Images/Tax%20Benefits.jpg --- - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Forms](https://sdnyrealty.com/forms/) -   [![S&D Commercial Real Estate Agency](https://blog.sdnyrealty.com/hs-fs/hubfs/S__D_Real_Estate_January2019/images/sd-original-logo_300px.png?width=300&height=194&name=sd-original-logo_300px.png "S&D Commercial Real Estate Agency")](https://sdnyrealty.com/) - [About](https://sdnyrealty.com/long-island-commercial-real-estate-firm/) - [Agents](https://sdnyrealty.com/long-island-real-estate-agents/) - [Listings](https://sdnyrealty.com/property-listings/) - [Property Management](https://sdnyrealty.com/property-management-company/) - [Resources](https://sdnyrealty.com/real-estate-resources/) - [Neighborhood Guide](https://sdnyrealty.com/neighborhood-guide/) - [Long Island](https://sdnyrealty.com/long-island-commercial-real-estate/) - [Nassau County](https://sdnyrealty.com/nassau-county-commercial-real-estate/) - [Bethpage](https://sdnyrealty.com/bethpage-commercial-real-estate/) - [Farmingdale](https://sdnyrealty.com/farmingdale-commercial-real-estate/) - [Franklin Square](https://sdnyrealty.com/franklin-square-commercial-real-estate/) - [Garden City](https://sdnyrealty.com/garden-city-commercial-real-estate/) - [Glen Cove](https://sdnyrealty.com/glen-cove-commercial-real-estate/) - [Hempstead](https://sdnyrealty.com/hempstead-commercial-real-estate/) - [Hicksville](https://sdnyrealty.com/hicksville-commercial-real-estate/) - [Long Beach](https://sdnyrealty.com/long-beach-commercial-real-estate/) - [Mineola](https://sdnyrealty.com/mineola-commercial-real-estate/) - [Rockville Centre](https://sdnyrealty.com/rockville-centre-commercial-real-estate/) - [Suffolk County](https://sdnyrealty.com/suffolk-county-commercial-real-estate/) - [Babylon](https://sdnyrealty.com/suffolk-county-commercial-real-estate/babylon-commercial-real-estate/) - [Brookhaven](https://sdnyrealty.com/brookhaven-commercial-real-estate/) - [Hauppauge](https://sdnyrealty.com/hauppauge-commercial-real-estate/) - [Huntington](https://sdnyrealty.com/huntington-commercial-real-estate/) - [Islip](https://sdnyrealty.com/islip-commercial-real-estate/) - [Melville](https://sdnyrealty.com/melville-commercial-real-estate/) - [Riverhead](https://sdnyrealty.com/riverhead-commercial-real-estate/) - [Smithtown](https://sdnyrealty.com/smithtown-commercial-real-estate/) - [Southampton](https://sdnyrealty.com/southampton-commercial-real-estate/) - [Consulting Services](https://sdnyrealty.com/consulting-services/) - [Property Appraisal Services](https://sdnyrealty.com/property-appraisal/) - [Zoning Regulations](https://sdnyrealty.com/zoning-regulations/) - [Forms](https://sdnyrealty.com/forms/) - [Veterans & Military Housing](https://sdnyrealty.com/veterans-military-housing/) - [Join our Program](https://sdnyrealty.com/veterans-military-housing/#apply-now) - [Forms & Applications](https://sdnyrealty.com/forms/) - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Blog](https://blog.sdnyrealty.com/blog) - [Contact](https://sdnyrealty.com/contact/) # What are the Most Common Tax Benefits Available to Homeowners? - January 24, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage), [interest rate](https://blog.sdnyrealty.com/blog/topic/interest-rate), [buying a house](https://blog.sdnyrealty.com/blog/topic/buying-a-house) - 0 ![What are the Most Common Tax Benefits Available to Homeowners?](https://blog.sdnyrealty.com/hubfs/Blog_Images/Tax%20Benefits.jpg) Buying a residential property will likely take a considerable hit on your wallet—but luckily, there are a few financial advantages available to homeowners. Depending on certain factors like your finances, mortgage and property, you may be entitled to receive certain [tax deductions](https://blog.sdnyrealty.com/blog/make-the-most-of-your-mortgage-tax-deduction) that could save you significant funds. Here are a few common tax benefits that you can take advantage of. ## The Most Lucrative Tax Benefits when Owning a Home ### Mortgage For the vast majority of homeowners, a mortgage loan is an absolute necessity when purchasing a residential property. It might seem like a hefty expense—but did you also know there are several tax benefits available to those with [mortgages](https://blog.sdnyrealty.com/blog/how-to-get-a-mortgage)? #### Interest A major advantage of having a mortgage interest is the ability to deduct it from your taxes. This can be especially valuable during the early years of your loan when most of your payments are applied to [interest](https://blog.sdnyrealty.com/blog/interest-rate-hike) rather than the principal. ![Tax Benefits](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Tax%20Benefits1.jpg?width=320&name=Tax%20Benefits1.jpg "Tax Benefits") #### Points Homeowners often pay [mortgage points](https://blog.sdnyrealty.com/blog/mortgage-points) in order to receive a reduced interest rate on their loan. Essentially, points are an upfront fee that’s paid to the lender at signing. One mortgage point is equivalent to 1% of your total [loan](https://blog.sdnyrealty.com/blog/how-to-refinance) value. They’re also fully tax deductible for the year when they were purchased. ### Property Taxes As a new homeowner, you will eventually have to start paying your fair share of property taxes on your residence. However, in local states like New York, New Jersey and Connecticut, taxes can be extremely high. If you are a homeowner in one of these states who itemizes deductions, you might be able to deduct a significant portion of your property taxes. ![Tax Benefits](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Tax%20Benefits2.jpg?width=320&name=Tax%20Benefits2.jpg "Tax Benefits") #### When to Claim Deductions You have to [claim](https://www.thebalance.com/property-tax-deduction-3192847) the deduction in the year that a payment is actually made. Since property taxes are usually billed quarterly, you might have to pay your first quarter taxes for one year in December of the year before. This means that you would need to claim that deduction for the previous year since that’s when you actually completed the transaction.   ### Eco-Efficiency These days, solar power seems to be one of the most widely-used practices in eco-friendly, energy-efficiency. While these improvements may seem expensive—they will actually save you money down the line by slashing your energy bill. But that’s not all! When you add improvements like [solar panels](https://energy.gov/eere/solar/homeowner-s-guide-going-solar), solar-powered water heaters, wind turbines and geothermal heat pumps, you will become eligible to receive certain tax benefits for your dedication to [energy-efficiency](https://blog.sdnyrealty.com/blog/summer-savings). ![Tax Benefits](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Tax%20Benefits3.jpg?width=320&name=Tax%20Benefits3.jpg "Tax Benefits") In most states, you will receive up to $500 worth of tax credits, which are more valuable than deductions since they decreases your tax bill dollar-for-dollar.  If you are looking to cash in on tax benefits for your residential property, make sure you pay close attention to this handy guide! --- [![Join The Commercial Courier](https://no-cache.hubspot.com/cta/default/432922/d68af3fc-de89-4dd0-bc71-e7dba2bb02f5.png)](https://cta-redirect.hubspot.com/cta/redirect/432922/d68af3fc-de89-4dd0-bc71-e7dba2bb02f5) ### Tags: - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate) - [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage) - [interest rate](https://blog.sdnyrealty.com/blog/topic/interest-rate) - [buying a house](https://blog.sdnyrealty.com/blog/topic/buying-a-house) ### [Previous post](https://blog.sdnyrealty.com/blog/multifamily-home) #### [How Landlords can Successfully Manage a Multifamily Home](https://blog.sdnyrealty.com/blog/multifamily-home) ### [Next post](https://blog.sdnyrealty.com/blog/modern-office) #### [How the Modern Office is Changing the Way We Work](https://blog.sdnyrealty.com/blog/modern-office) ### Related posts [![How a Home Appraisal Determines Residential Property Value](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Home%20Appraisal.jpg?width=768&name=Home%20Appraisal.jpg)](https://blog.sdnyrealty.com/blog/home-appraisal) - September 26, 2018 - [Buying](https://blog.sdnyrealty.com/blog/topic/buying), [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Selling](https://blog.sdnyrealty.com/blog/topic/selling), [property value](https://blog.sdnyrealty.com/blog/topic/property-value), [Refinancing](https://blog.sdnyrealty.com/blog/topic/refinancing) ### How a Home Appraisal Determines Residential Property Value Appraising a property plays a significant role in the real estate industry. While appraisals are used for a wide variety of reasons, one thing is... [Continue reading](https://blog.sdnyrealty.com/blog/home-appraisal) [![How to Paint your Home or Apartment: A Beginner’s Guide](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/How%20to%20Paint.jpg?width=768&name=How%20to%20Paint.jpg)](https://blog.sdnyrealty.com/blog/how-to-paint) - September 05, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [property value](https://blog.sdnyrealty.com/blog/topic/property-value), [home improvement](https://blog.sdnyrealty.com/blog/topic/home-improvement), [interior design](https://blog.sdnyrealty.com/blog/topic/interior-design) ### How to Paint your Home or Apartment: A Beginner’s Guide Whether it’s the wall, trim or ceilings, painting the interior of your home or apartment isn’t such an easy project. From preparation to execution... [Continue reading](https://blog.sdnyrealty.com/blog/how-to-paint) [![Expert Moving Tips to Efficiently Get You from Point A to B](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Moving%20Tips.jpg?width=768&name=Moving%20Tips.jpg)](https://blog.sdnyrealty.com/blog/moving-tips) - August 29, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [moving](https://blog.sdnyrealty.com/blog/topic/moving), [moving checklist](https://blog.sdnyrealty.com/blog/topic/moving-checklist) ### Expert Moving Tips to Efficiently Get You from Point A to B Moving into a new home or apartment is hardly ever a smooth process. From packing to unpacking, and everything else in between, there are certain... [Continue reading](https://blog.sdnyrealty.com/blog/moving-tips) ### Blog Search ### Recent Posts [![Click Here to Join our Newsletter](https://no-cache.hubspot.com/cta/default/432922/19f66de0-1cba-45a5-a498-016133232e0e.png)](https://cta-redirect.hubspot.com/cta/redirect/432922/19f66de0-1cba-45a5-a498-016133232e0e) ### Topics - [residential real estate (65)](https://blog.sdnyrealty.com/blog/topic/residential-real-estate) - [commercial real estate (48)](https://blog.sdnyrealty.com/blog/topic/commercial-real-estate) - [Buying (40)](https://blog.sdnyrealty.com/blog/topic/buying) - [Tips (36)](https://blog.sdnyrealty.com/blog/topic/tips) - [Renting (23)](https://blog.sdnyrealty.com/blog/topic/renting) - [Selling (20)](https://blog.sdnyrealty.com/blog/topic/selling) - [Mortgage (15)](https://blog.sdnyrealty.com/blog/topic/mortgage) - [commercial property (15)](https://blog.sdnyrealty.com/blog/topic/commercial-property) - [lease (15)](https://blog.sdnyrealty.com/blog/topic/lease) - [office (14)](https://blog.sdnyrealty.com/blog/topic/office) - [Finance (13)](https://blog.sdnyrealty.com/blog/topic/finance) - [buying a house (12)](https://blog.sdnyrealty.com/blog/topic/buying-a-house) ### Follow Us Find helpful blogs of both residential and commercial real estate on Long Island. For more questions, feel free to contact us at [info@sdnyrealty.com](mailto:info@sdnyrealty.com)   - [About](https://sdnyrealty.com/long-island-commercial-real-estate-firm/) - [Listings](https://sdnyrealty.com/property-listings/) - [Property Management](https://sdnyrealty.com/property-management-company/) - [Resources](https://sdnyrealty.com/real-estate-resources/) - [Veterans & Military Housing](https://sdnyrealty.com/veterans-military-housing/) - [Blog](https://blog.sdnyrealty.com/blog) - [Contact](https://sdnyrealty.com/contact/) [![S&D](https://blog.sdnyrealty.com/hubfs/S__D_Real_Estate_January2019/images/sd-original-logo_150px.png)](https://sdnyrealty.com/) Full-service real estate and property management firm serving Long Island and the NY Metropolitan Area since 1949. ### Contact Info - [27 E Jericho Turnpike Suite 2 Mineola NY 11501](https://www.google.com/maps?rlz=1C1CHBF_enUS811US811&q=Smith+and+Degroat+Real+Estate+%7C+Commercial+Real+Estate+Agency+Long+Island&stick=H4sIAAAAAAAAAONgecSYyS3w8sc9YamESWtOXmOM4uIKzsgvd80rySypFPLhYoOyFLj4pbj10_UNS7KyCi2NijQYpHi5kAWkFJS4eDfoeUmIhqTJXNES4hS3q1nzuf1Qp-DPz9cyDTS_RPAAAClF56FuAAAA&biw=2560&bih=938&um=1&ie=UTF-8&sa=X&ved=0ahUKEwjQovbckObdAhXsYd8KHVqGBC4Q_AUIDigB) [516-248-6905](tel:1-516-248-6905) ### Listings [699 Nassau Rd, Uniondale NY, 11553](https://blog.sdnyrealty.com/blog/home-appraisal) $649,000 1783 SF Mixed-Use [![699 Nassau Rd, Uniondale NY, 11553](https://blog.sdnyrealty.com/hubfs/S__D_Real_Estate_January2019/images/699-Nassau-Rd-Uniondale-Featured-IMG-380x280.jpg)](https://smithandd.staging.wpengine.com/property/699-nassau-rd-uniondale-ny-11553/) [310 Willis Avenue, Mineola NY, 11501](https://blog.sdnyrealty.com/blog/tenants-rights) $750,000 3525 SF Commercial, Office [![310 Willis Avenue, Mineola NY, 11501](https://blog.sdnyrealty.com/hubfs/S__D_Real_Estate_January2019/images/310-Willis-Avenue-Mineola-Featured-IMG-380x280.jpg)](https://smithandd.staging.wpengine.com/property/310-willis-avenue-mineola-ny-11501/) ### Newsletter Subscribe to our newsletter for expert tips, exclusive listings and more!   **Disclaimer:** The information herein does not constitute an offer, representation, or warranty, and S&D Real Estate cannot guarantee the completeness or accuracy of any information contained herein. Prospective purchasers should independently verify all information pertaining to the subject property; and may do so through, among other sources, available public records from the applicable municipality. © S&D Commercial Real Estate Long Island 2019. All Rights Reserved. [Privacy Policy](https://sdnyrealty.com/privacy-policy/) Follow us