Do you pay your mortgage faithfully every month and would like to get some money back? Have you heard from friends that you can deduct a certain amount from your tax base and get something back from the state? Let us look at how getting back mortgage interest works in practice and what you need to do.
Tax reduction and mortgages in practice
The state allows anyone who takes out a mortgage and repays it properly every month to deduct the amount they pay the bank in interest. We explain it simply with the example below.
Practical example
Your monthly payment is 10,000 CZK (about 460 USD), so you pay the bank 120,000 CZK (about 5,500 USD) a year. Of this, you pay, for example, 54,000 CZK (about 2,500 USD) in interest. This amount is only a guide, because it depends on your mortgage interest rate and how long you have had the mortgage. In general, the amount you pay in interest tends to be higher in the first years and lower towards the end of the repayment period. Also, the larger your mortgage, the more interest you will pay.
Confirmation of interest paid
You cannot claim the tax reduction without this confirmation. Your bank issues this document at the start of each year. Most banks do this automatically and even send it to you by email or post. With some banks, you have to download the confirmation yourself, for example in your internet banking. This document shows how much interest you paid the bank over the past year.
What to do next?
When it is time to file your tax return and you have the confirmation of interest paid, you have basically everything you need. If your tax return is prepared by an accountant at your employer, or you have your own accountant, you simply hand over the confirmation and do not need to worry about anything else.
If you do your tax return yourself, we recommend downloading the interactive form. Look for the box called “interest deduction” (“odečet úroků”), enter the amount shown on your confirmation and you are done. If you have other loans that were used to buy property, you can deduct the interest on them too, and it works in exactly the same way. You would then simply add the amounts together. The final amount is deducted from your tax base, and in our experience you usually get some money back. Any overpayment is paid out by the relevant tax office (finanční úřad), usually in April or May after you file your tax return.
Now you know that deducting interest is actually very easy, even if you prepare your tax return yourself. If you are interested in other topics about saving money, take a look at our article on how to save or our article on the family budget and a suitable app you can use for it.
USD amounts are approximate, converted at the Czech National Bank rate of 21.83 CZK per USD on 27 October 2026.
