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Mortgage Interest Tax Credit

  1. Overview
  2. Qualifying conditions
  3. How much can you claim?
  4. Interest paid for less than a full year
  5. More than one claimant
  6. How to claim

How much can you claim?

The Mortgage Interest Tax Credit reduces the amount of Income Tax that you must pay in 2023.

You must have an Income Tax liability to offset against to benefit from the Mortgage Interest Tax Credit. The credit does not provide relief against Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

You will not be able to fully utilise the credit if the credit due exceeds your Income Tax liability. However, you can receive a partial refund. This refund will be equal to your total Income Tax liability for the year.

Tax relief is granted at 20%. The maximum amount you can be refunded from the Mortgage Interest Tax Credit is €1,250 per residence.  

  • Example

    John has a qualifying loan on a property. On 31 December 2022, John had an outstanding mortgage balance of €200,000. John’s loan was in place for all of 2022 and 2023. In 2023, John paid €12,000 in interest on his qualifying loan. In 2022, John paid €9,000 in interest on his qualifying loan.

    John's Mortgage Interest Tax Credit
     John's 2023 Interest paid (A)  €12,000
     John's 2022 Interest paid (B)  €9,000
     A-B  €3,000

    Mortgage Interest Tax

    Credit due at 20%

    		  €600

     

Revenue systems will calculate the relief due to you when you have input the required information.

Next: Interest paid for less than a full year

Published: 20 March 2024 Print this page

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