Taxes, Cash & Savings · Surprise rank #305
NY Homeowners Can Deduct Mortgage Interest and Property Taxes on State Returns
New York mortgage-interest / property-tax itemized deduction
Who
New York taxpayers with qualifying itemized deductions, including eligible homeowners.
What to do
Start here: Review Form IT-196 instructions or consult a qualified tax preparer before filing the New York return.
Eligibility: You must use the current IT-196 rules and have qualifying expenses; New York calculations can differ from current federal rules.
What you get
New York taxpayers who itemize can calculate a state itemized deduction for qualifying mortgage interest and property taxes under New York rules.
Benefit: A state income-tax deduction that may reduce taxable income.
Possible value: Tax savings depend on income, filing status, deductions, and New York's limits; it is not a dollar-for-dollar credit.
Good to know
Important: Do not copy the federal Schedule A result blindly: NY's itemized-deduction calculations use specific New York rules, including references to 2017 federal rules for some items.
Availability: Current annual state-tax filing option.
Why people miss it: Federal tax changes make many filers assume the state calculation is identical.
Sources reviewed: Aug 10, 2026