Assume your home is assessed at $255,000. You have a $249,000 loan for 25 years at 6 percent. Your property tax rate is 1.5 percent of the assessed value. In year one, you would pay $16,185 in mortgage interest and $3,825 in property tax (1.5 percent on $255,000 assessed value).
What is the total deduction you can take on your federal income tax return?