How it works
This credit is based entirely on how much more interest you paid on your mortgage in a given year compared to what you paid in 2022 — the year before interest rates started rising sharply. The government introduced it in Budget 2024 to help homeowners who saw their mortgage costs increase significantly.
The credit is calculated at 20% (standard rate) of the increase in interest, up to a cap.
Credit amounts by year
| Tax year | How it's calculated | Maximum credit | Claim from |
|---|---|---|---|
| 2023 | 20% of increase in interest vs 2022 | €1,250 | 2024 |
| 2024 | 20% of increase in interest vs 2022 | €1,250 | 2025 |
| 2025 | 20% of increase in interest vs 2022 | €1,250 | 2026 |
| 2026 | 20% of 50% of increase in interest vs 2022 | €625 | 2027 |
Source: Revenue.ie — Mortgage Interest Tax Credit ↗
Who qualifies?
| Condition | Requirement |
|---|---|
| Mortgage balance on 31 Dec 2022 | Between €80,000 and €500,000 |
| Lender type | Must be with a qualifying lender (Central Bank regulated credit institution) |
| Property use | Your principal private residence in Ireland |
| Interest increase | You must have paid more interest in the claim year than in 2022 |
Source: Citizens Information — Mortgage Interest Relief ↗
Revenue claim process
PAYE employees claim through myAccount on Revenue.ie. Under tax credits, select "Mortgage Interest Tax Credit" and enter your mortgage interest details for the relevant year. Revenue will calculate the credit and issue a refund or apply it to your tax bill.
You will need your mortgage interest statement from your lender, which is typically issued in January or February for the previous year.
What this means in real life
In practical terms, this relief can reduce income tax for a qualifying homeowner where mortgage interest increased between the comparison years set by the scheme. It is not a reduction in the mortgage balance or a payment from the lender. Revenue calculates the credit using eligible interest figures and the statutory limits, so the amount can be lower than the increase shown on bank statements. A homeowner also needs sufficient income tax liability for a non-refundable credit to have its full effect. The qualifying loan, property use and claim year all matter. Mortgage Interest Relief is separate from the Help to Buy scheme, which relates to tax refunded toward the purchase of a qualifying new home. Revenue guidance confirms the documents and figures required for a claim.