Mortgage interest tax credit

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

In Budget 2024, the Government announced a new temporary mortgage interest tax credit (MITC). This MITC applies to the 2023 tax year only and was brought in under the Finance Act 2023.

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.

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.

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

Your tax 

• You must comply with your Local Property Tax obligations
• You must have paid income tax to get the Mortgage Interest Tax Credit, as the credit reduces the tax you pay

If you don’t qualify because you haven’t paid enough income tax, you may be able to get the Homeowner’s Once-Off Payment instead. See, ‘What if I don’t qualify for the mortgage interest tax credit?’ below for more information about this payment.

Your property

• 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.

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.

Revenue has published information about the mortgage interest tax credit, including examples of how it applies in different situations.

You can claim the mortgage interest tax credit by making an income tax return for 2023 using Revenue’s MyAccount or ROS services.

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.

If you applied for the mortgage interest tax credit, but didn’t get it because you hadn’t paid enough income tax, you may qualify for the Homeowner’s Once-Off Payment instead. The Homeowner’s Once-Off Payment is paid by the Department of Social Protection to certain people who didn’t qualify for the mortgage interest tax credit.

How do I qualify for the Homeowner’s Once-Off Payment?

To qualify for the Homeowner’s Once-Off Payment you must:

• Meet all the qualification criteria for the mortgage interest tax credit, apart from the condition about having a sufficient tax liability
• Have completed an income tax return for 2023 and applied for the mortgage interest tax credit

How much is the Homeowner’s Once-Off Payment? 

If you qualify for payment, you’ll get the same amount as if you’d qualified for the mortgage interest tax credit. This is because the payment and the credit are calculated in the same way. So, you get 20% of the amount that your mortgage interest increased between 2022 and 2023. And the payment is capped at €1,250.

How do I apply for the Homeowner’s Once-Off Payment?

Complete the application form. Bring the completed form and any supporting documents to the Community Welfare Officer at your local Intreo Centre, or send them to:

Community Welfare Services

Department of Social Protection
National Rent Supplement Section
PO Box 12188
Freepost FDN 7609
Dublin 2

If you need help filling in the application form, you can:

• Phone the National Phone Line for Community Welfare Services on 0818 607 080
• Contact your local Intreo Centre
• Contact your local Citizen Information Centre

You can apply for the Homeowner’s Once-Off Payment between 1 September 2024 and 31 March 2025.