Mortgage Interest Relief (Tax Relief at Source - TRS)

How do you calculate Mortgage Interest Relief?

You can claim tax relief on the amount of interest actually paid by you within a tax year (calendar year) on a qualifying home loan.

The relief is subject to rates and thresholds depending on the year of purchase.

The relief continues up to the end of 2020 for loans taken out between 2004 and 2012 inclusive.

Any missed or late mortgage payments results in reduced or non-payment of relief so you should contact your lender if you have any payment queries.

First time buyers

The rate of relief payable for the first seven years is currently:

  • 25% for years one and two
  • 22.5% for years three, four and five
  • 20% for years six and seven.

Lower rates apply if you bought your first home before 2009.

If you bought your first home between 2004 and 2008 inclusive, the rate of relief for the tax years 2012 to 2020 is 30%.

Maximum interest on which tax relief is payable to the end of 2017 is:

  • €20,000 if married or in a civil partnership, widowed or a surviving civil partner
  • €10,000 if a single person.

Lower thresholds apply if you bought your first home before 2008.

See Thresholds and rates in this section for thresholds that apply for years 2018 to 2020.

After year seven, the rates and thresholds for relief revert to those of a non-first time buyer.

You can claim the full amount of relief due if:

  • a parent acts as a co-mortgagor or guarantor for a first time buyer
  • the parent does not pay any of the mortgage.

You can contact the TRS Helpline on 1890 46 36 26 for further details on the above.

Non-first time buyers

The rate of relief paid on qualifying home loans is currently 15%.

Maximum interest on which tax relief is payable to the end of 2017 is:

  • €6,000 if married or in a civil partnership, widowed or a surviving civil partner
  • €3,000 if a single person.

Higher rates and lower thresholds applied for some years before 2009.

See Thresholds and rates in this section for thresholds that apply for years 2018 to 2020.

You can contact the TRS Helpline on 1890 46 36 26 for further details.

Next: Thresholds and rates