With all of the tax deductions that come with owning a home, the government is basically funding the purchase of your Jacksonville Florida home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to lessen your taxable income. For instance, if your initial loan balance was $150,000 with an interest rate of 8%, you would pay $9,969.27 in interest. If your first payment was January 1, your taxable income would be almost $10,000 less because of the IRS interest rate deduction. Additionally, property taxes are deductible too. Your Florida tax obligation can be lowered when you pay property taxes in a given year.