Interest/Property taxes/Insurance deduction in CA - How it works?

[Artur A.]

I bought the first house in CA ( Contra Costa) - 350k.

I'm working as a full-time employee, software engineer, making around 126k per year.

How much I can deduct:

1)interest (1st year is about 9.5k interest payments). 

2)property taxes (I heard maximum deduction for prop taxes - 10’000)

3)home insurance

Can I deduct them all?  How is it works? - After filing all taxes should expect that I will get back around 19.5 k back to my account from IRS? or it means (126'000 - 19'500 = 106'500 is my taxable income and I will get back 30% from this 19'500)

[Darius Ogloza]

You can deduct your mortgage interest (all of it since your loan is less than $1 million) and your state and local taxes up to $10,000 (the rule since the new tax law in 2017).  You typically cannot deduct insurance cost on a primary residence. If the Democrats win the Congress and White House in November there is a good chance you will see the return of the unlimited SALT (state and local tax) deduction.