Paying off Rental or Primary

[Raif Jochim]

Bigger Pockets Community -

I'm trying to plan for the future and have a question I'd like your thoughts on.  In the past few years I've had some larger tax billed at the end of the year and I'm brainstorming ways I can reduce that burden.

If I'm able to pay of our primary residence or a rental property, which should I choose?

If I choose the rental, then all income generated will be taxable income moving forward, because none will be off-set by the interest I could deduct.  Thus, my taxes should be higher because of the income I generate.

If I pay off the primary, I'll increase the amount I'm able to save monthly not having the mortgage, while also keeping the income generation lower on the rental because the mortgage remains open.

Any thoughts would be appreciated!