Mortgage Interest Tax Credit

Overview

The Finance Act 2023 introduced the Mortgage Interest Tax Credit. This tax credit is for taxpayers who have made payments in respect of a qualifying loan for a principal private residence. The Mortgage Interest Tax Credit was originally only available for the year 2023.

In Finance Act 2024, it was extended to include the year 2024. In Finance Act 2025, it was further extended to include the years 2025 and 2026.

How the credit works for 2023 to 2025

The value of the credit, and all qualifying criteria, remain unchanged for 2023, 2024 and 2025 claims. The credit is available in respect of the increase in interest paid in 2023, 2024 or 2025 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax (20%) is capped at €6,250 per property. This is equivalent to a maximum tax credit of €1,250.

How the credit works for 2026

For 2026, the value of the credit is calculated based on 50% of the increase in interest paid in 2026 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax (20%) is capped at €3,125 per property. This is equivalent to a maximum tax credit of €625. All qualifying criteria, remain unchanged.

Who can claim the credit

The credit is available to homeowners with an outstanding mortgage balance between €80,000 and €500,000 as of 31 December 2022.

Next: Qualifying conditions