Mortgage interest tax credit
What is a mortgage interest tax credit or relief?
A mortgage interest tax credit or relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a tax year for your home.
To qualify for a tax credit on mortgage interest repayments, you must have paid interest on money that you borrowed to purchase, repair, develop or improve your main residence.
New mortgage interest tax credit
What was the previous mortgage interest relief scheme?
There was a previous mortgage interest relief scheme that ended on 1 January 2021. Mortgages taken out after 31 December 2012 did not qualify for this mortgage interest relief. For information about this previous mortgage interest relief scheme see, revenue.ie.
What is the new mortgage interest tax credit scheme?
A new temporary mortgage interest tax credit was announced in Budget 2024 for certain homeowners. This tax credit only applies to tax assessments for 2023.
The tax relief is available to taxpayers with mortgage balances of between €80,000 and €500,000 as of 31 December 2022. The credit is available for the 2023 tax year only and is based on the increase in interest paid in 2023 compared with the interest paid in 2022.
Do I qualify for the new mortgage interest tax credit?
To qualify for this mortgage interest tax credit you must meet certain conditions and claim the credit in your tax return for 2023.
Your mortgage loan
- You must have had an outstanding mortgage balance of between €80,000 and €500,000 on 31 December 2022
- Your loan must be with a qualifying lender. A qualifying lender is a lender listed as a credit information provider by the Central Bank of Ireland.
- You must have paid interest on the loan in 2022 and 2023
- The amount of interest you paid on the loan in 2023 must have increased from what you paid in 2022
- You must have paid income tax to get the Mortgage Interest Tax Credit, as the credit reduces the tax you pay
- You must comply with your Local Property Tax obligations
- The property must be in the State
- You must comply with any planning permission requirements granted on or before 31 December 2022
- You must not have bought the property from a connected party for much more than the property’s value
- The property should be your only residence or your main residence, or a residential property you, your spouse or civil partner use so you can attend work
Paying mortgage interest for someone else
You may also be able to claim the credit if you are paying the mortgage interest on a qualifying loan for the main private residence of:
- Your former or separated spouse or civil partner
- A dependant relative who does not pay you rent
A dependant relative is your, or your spouse or civil partner’s:
- Widowed mother, widowed father or parent who is a surviving civil partner
- Relative who is unable to look after themselves due to old age or illness
The complete definition of a dependant relative can be found in the Taxes Consolidation Act 1997.
How much is the new mortgage interest tax credit?
You can get a mortgage interest tax credit on the increased interest you paid on your mortgage in 2023 when compared with the amount you paid in 2022. The tax credit is 20% of the increase, which is the standard income tax rate. The credit is capped at €1,250.
For 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 paid €3,000 more in mortgage interest in 2023 than in 2022. John's Mortgage Interest Tax Credit is 20% of €3,000 = €600
John’s Mortgage Interest Tax Credit
- John’s 2023 mortgage interest paid (A) €12,000
- John’s 2022 mortgage interest paid (B) €9,000
- A-B = €3,000
- John’s Mortgage Interest Tax Credit is 20% of €3,000 = €600
What if I didn't pay interest for a full year?
If you did not have mortgage interest payments for a full year in 2022 or 2023, the credit and the cap will be applied on a pro-rata basis. You can find more information about how this is calculated on revenue.ie.
What if more than one person qualifies for the credit on a property?
There is only one credit available per property. So, if more than one person qualifies for the credit for a property, the credit is divided between them based on the amount of interest each of them paid. Revenue has more information on how the credit is calculated if there is more than one claimant.
How do I claim the mortgage interest tax credit?
There is a ‘mortgage interest tax credit’ option in the tax credits page when you are completing your income tax return for 2023.
What documents do I need to claim the credit?
To claim the MITC, you need to submit the following documents to Revenue when making your 2023 tax return:
- Your certificate of mortgage interest for 2022
- Your certificate of mortgage interest for 2023
- Confirmation of your mortgage balance at 31 December 2022
You can upload and submit these documents online using Revenue’s MyAccount or ROS services.
Read Revenue’s guide to the MITC (pdf) for more information about how to claim the credit.
Revenue has published information about the mortgage interest tax credit, including examples of how it applies in different situations.