Texas Buyer Tool
Mortgage Credit Certificate (MCC) Calculator
Texas MCC programs convert a portion of your mortgage interest into a dollar-for-dollar federal tax credit — often $1,500–$2,000 every year you own the home.
Your inputs
Year-1 federal tax credit
$2,000
Dollar-for-dollar reduction
Year-1 mortgage interest
$21,160
MCC rate
30%
Capped at $2,000/yr
Effective monthly savings
$167
Adjust W-4 to capture now
Approx. lifetime credit
$42,000
Declines with principal
How it works: An MCC lets you claim a percentage of your annual mortgage interest as a federal tax credit while still deducting the rest. The credit lasts as long as you live in the home with the original loan. In Texas, MCCs are issued through TSAHC and TDHCA — and many buyers stack them with down payment assistance.
The federal MCC credit is capped at $2,000 per year. Eligibility depends on income limits, purchase price limits, and first-time buyer status (some Texas target areas waive this). Consult a tax advisor.