The functionality of piezoelectric devices is of significant importance in the electromechanical impedance (EMI)-based structural health monitoring (SHM) and damage detection. Despite the previous work, the EMI response characteristics of a degraded piezoelectric-based smart interface have not been sufficiently investigated due to the difficulty in making realistic functional defects via the experiment. To overcome this issue, we present a predictive simulation strategy to comprehensively investigate the EMI response characteristics of a smart interface subjected typical functional degradations. For that, a bolted steel girder connection is selected as a host structure to experimentally conduct EMI response measurement via the smart interface. Then, a finite element (FE) model corresponding to the experimental model is established and updated to reproduce the measured EMI response. By using the updated FE model, four common degradation types, including shear lag effect, transducer debonding, transducer breakage, and interface detaching are simulated and their effects on the EMI response are comprehensively analyzed. It is found that the interface detaching defect has significant impacts on the primary resonances of the EMI response and generates additional peaks with complex modal shapes. Also, the functional defects can result in distinctive EMI response characteristics, which are promising for assessing the functional condition of the smart interface.