Tax time can be painful for many of us! Homeownership, however, is the best way to lower your tax bill! You can deduct the interest you pay on your home’s mortgage up to $1 million for a married couple. Plus, you can deduct the interest you pay on the mortgage on your second home or vacation home. The tax benefits of homeownership just starts there. Prepaid interest, property tax deductions, mortgage insurance premiums and some energy efficient upgrades may be deductible.