How to Calculate the Tax Savings of Owning a Home. One of the big advantages of buying a home is that the IRS allows you to deduct, within limits, the property taxes and mortgage interest on your annual tax return. Here's an easy way to figure out how much you'll be able to save.
Calculate your monthly mortgage payment and property taxes (see Related eHows).
Multiply by 12 (if you are paying monthly) or 26 (if you are paying biweekly) to arrive at your annualized payment.
Multiply this annual amount by your federal income tax rate to arrive at a very reliable estimate of your tax savings.