Tax relief on Interest Paid on Qualifying Home Loans (Mortgage Interest Relief)
The ceilings or upper thresholds on the amount of interest paid that qualifies for tax relief are dependant on -
- the status of the individual - that is, whether he or she is married, in civil partnership or single; and
- whether he or she is a first time buyer.
The ceilings are –
| Married / Civil partnership / Widowed / Surviving civil partner | Unmarried / Not in civil partnership | |
|---|---|---|
| First Time Buyers (First 7 tax years of entitlement to tax relief on interest paid) | €20,000 | €10,000 |
| Non First Time Buyers | €6,000 | €3,000 |
The rates of tax relief on qualifying interest paid are –
| Tax Years 1 & 2 |
Tax years 3, 4 & 5 |
Tax Years 6 & 7 [*] |
|
|---|---|---|---|
| First time buyers (First 7 tax years of entitlement to tax relief on interest paid) | Rate of tax relief = 25% |
Rate of tax relief = 22.5% |
Rate of tax relief = 20% |
| Non-First time buyers | Rate of tax relief = 15% | ||
* Note: After year 7, the rates are those that apply to non-first time buyers
Exemption: Notwithstanding the rates of tax relief mentioned above, for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008, the rate of tax relief on the interest paid on the loan to purchase that property will, for the tax years 2012 to 2017, be 30%
| Year first principal private residence purchased | 2012 Rate | 2012 Ceiling | 2013 Rate | 2013 Ceiling | 2014 Rate | 2014 Ceiling | 2015 Rate | 2015 Ceiling | 2016 Rate | 2016 Ceiling | 2017 Rate | 2017 Ceiling |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 25% | €10,000 | 25% | €10,000 | 22.5% | €10,000 | 22.5% | €10,000 | 22.5% | €10,000 | 20% | €10,000 |
| 2011 | 25% | €10,000 | 22.5% | €10,000 | 22.5% | €10,000 | 22.5% | €10,000 | 20% | €10,000 | 20% | €10,000 |
| 2010 | 22.5% | €10,000 | 22.5% | €10,000 | 22.5% | €10,000 | 20% | €10,000 | 20% | €10,000 | 15% | €3,000 |
| 2009 | 22.5% | €10,000 | 22.5% | €10,000 | 20% | €10,000 | 20% | €10,000 | 15% | €3,000 | 15% | €3,000 |
| 2008 | 30% | €10,000 | 30% | €10,000 | 30% | €10,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 |
| 2007 | 30% | €10,000 | 30% | €10,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 |
| 2006 | 30% | €10,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 |
| 2005 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 |
| 2004 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 | 30% | €3,000 |
| Start Date | 2012 Rate | 2012 Ceiling | 2013 Rate | 2013 Ceiling | 2014 Rate | 2014 Ceiling | 2015 Rate | 2015 Ceiling | 2016 Rate | 2016 Ceiling | 2017 Rate | 2017 Ceiling |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2011 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2010 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2009 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2008 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2007 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2006 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2005 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| 2004 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 | 15% | €3,000 |
| Year first principal private residence purchased | 2012 Rate | 2012 Ceiling | 2013 Rate | 2013 Ceiling | 2014 Rate | 2014 Ceiling | 2015 Rate | 2015 Ceiling | 2016 Rate | 2016 Ceiling | 2017 Rate | 2017 Ceiling |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 25% | €20,000 | 25% | €20,000 | 22.5% | €20,000 | 22.5% | €20,000 | 22.5% | €20,000 | 20% | €20,000 |
| 2011 | 25% | €20,000 | 22.5% | €20,000 | 22.5% | €20,000 | 22.5% | €20,000 | 20% | €20,000 | 20% | €20,000 |
| 2010 | 22.5% | €20,000 | 22.5% | €20,000 | 22.5% | €20,000 | 20% | €20,000 | 20% | €20,000 | 15% | €6,000 |
| 2009 | 22.5% | €20,000 | 22.5% | €20,000 | 20% | €20,000 | 20% | €20,000 | 15% | €6,000 | 15% | €6,000 |
| 2008 | 30% | €20,000 | 30% | €20,000 | 30% | €20,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 |
| 2007 | 30% | €20,000 | 30% | €20,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 |
| 2006 | 30% | €20,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 |
| 2005 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 |
| 2004 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 | 30% | €6,000 |
| Start Date | 2012 Rate | 2012 Ceiling | 2013 Rate | 2013 Ceiling | 2014 Rate | 2014 Ceiling | 2015 Rate | 2015 Ceiling | 2016 Rate | 2016 Ceiling | 2017 Rate | 2017 Ceiling |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2012 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2011 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2010 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2009 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2008 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2007 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2006 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2005 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
| 2004 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 | 15% | €6,000 |
December 2011
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