How Your Mortgage Can Help You Save on Taxes in Hudson, WI

Your mortgage isn't just a way to finance a home — it can also be a smart part of your tax strategy.

Whether you’re already a homeowner in Hudson, WI, or you're exploring homes for sale in the Twin Cities or Western Wisconsin, knowing how to use your mortgage to your advantage could lead to meaningful savings come tax season.

Here’s how homeowners in the Hudson area can benefit:

Mortgage Interest Deduction

One of the most valuable tax breaks available to homeowners is the mortgage interest deduction.

If your mortgage qualifies, you may be able to deduct the interest you pay each year, which:

• Reduces your taxable income

• Lowers your overall tax bill

• Helps maximize your return, especially in the early years of your loan

Local Tip: In Hudson WI real estate, where home prices have been rising steadily, this deduction can add up quickly — especially for newer loans with higher interest portions.

Property Tax Deductions

If you own a home in Hudson, you’re likely paying property taxes — and those may be deductible on your federal tax return.

This can be a valuable deduction, especially as property values — and tax rates — continue to climb in our area.

You may qualify to deduct:

• Local and state property taxes

• Up to the IRS deduction limit (currently $10,000 for combined state and local taxes)

Helpful Insight: With more folks moving to Hudson each year, home values (and taxes) are trending upward — which makes this deduction even more important to understand

Home Office Deductions for Remote Workers

Working from home? You're not alone. Many Hudson residents have converted spare bedrooms or finished basements into dedicated office spaces.

If you’re self-employed or run your own business from home, you might qualify for home office tax deductions.

Potential deductions include:

• A portion of your mortgage interest

• Utilities and internet tied to your workspace

• Maintenance or repairs related to your office

• Depreciation of space used exclusively for business

Real Example: A Hudson-based photographer I recently worked with wrote off part of their studio remodel — simply by designating the space as their full-time home office.

Refinancing Can Bring Tax Savings Too

Thinking about refinancing your mortgage in Hudson? It’s not just about lowering your monthly payment.

Refinancing could offer:

• A chance to deduct certain closing costs (like points paid)

• Long-term savings on interest

• A way to restructure your loan in a tax-smart way

Pro Tip: Talk to both your lender and your tax advisor when refinancing to understand how your new loan might impact your deductions.

How to Maximize Your Homeownership Benefits

There’s no one-size-fits-all when it comes to taxes and homeownership. Every homeowner’s situation is a little different, which is why professional guidance is key.

To make the most of your mortgage:

• Work with a qualified tax professional

• Keep clear records of payments, interest, and expenses

• Don’t assume deductions — verify what applies to you

 If you’re navigating Hudson WI real estate, refinancing, or planning a move to Western Wisconsin or the Twin Cities metro, I can help connect you with trusted local experts to make sure your mortgage supports your financial goals.

Ready to make a move in Hudson or the surrounding area?
Let’s talk! Contact The Johnson Group at Coldwell Banker Realty today to start your journey.

📞 Call us today at 651-333-7656
🌐 Or visit www.johnsonhomegroup.com
📍 Serving Hudson, WI and the greater Twin Cities metro area

Written by Mark Johnson, REALTOR® and owner of The Johnson Group at Coldwell Banker Realty. With over 20 years of experience helping clients across Hudson, WI and the Twin Cities, Mark is passionate about delivering expert real estate guidance with a personal touch.