what is a tax shield example 
a common example of a tax shield is mortgage interest a person buys a house with a mortgage and pays interest on that mortgage that interest is tax deductible which is offset against the person s taxable income this then reduces their overall tax burden 8the bottom linetax shields allow taxpayers to reduce the amount of taxes owed by lowering their taxable income when filing your taxes ensure you are taking these deductions so that you can save money when tax season arrives 