Mortgage Interest Relief (Tax Relief at Source - TRS)

Thresholds and rates

Mortgage Interest Relief has been extended on a reducing basis for a further three years. If you are entitled to relief up to end of 2017 then it will automatically continue to the end of 2020.

No relief will be available from 1 January 2021 onward.

The table below shows how the qualifying interest reduction will take effect:

Qualifying interest
2017201820192020
100% 75% 50% 25%

The interest thresholds or maximum amount of interest allowable are also reduced for each of the three years as follows:

First time buyers
 2017 €2018 €2019 € 2020 €
Single

10,000

7,500

5,000

2,500

Married, in civil partnership, widowed or surviving civil partner

20,000

15,000

10,000

5,000

Non-first time buyers
 2017 €2018 €2019 €2020 €
Single

3,000

2,250

1,500

750

Married, in civil partnership, widowed or surviving civil partner

6,000

4,500

3,000

1,500

The following examples show how to calculate your mortgage interest relief from 2018 onwards.

Thresholds and rates up to the end of 2017

The thresholds on the amount of interest paid that qualify for tax relief depend on whether you are:

  • married, in a civil partnership, or single
  • a first time buyer.
Thresholds on the amount of interest paid that qualify for tax relief
 Married, in a civil partnership, widowed, or a surviving civil partnerSingle (unmarried or not in a civil partnership)
First time buyers (first seven tax years of entitlement to tax relief on interest paid)

€20,000

€10,000

Non-first time buyers

€6,000

€3,000

Rates
 Tax Years 1 & 2Tax years 3, 4 & 5Tax Years 6 & 7Tax Years 8 onwards
First time buyers

25%

22.5%

20%

15%

Non-first time buyers

15%

If you purchased your first Principal Private Residence (PPR) between 1 January 2004 and 31 December 2008 inclusive, your tax relief for 2012 to 2020 is 30%.

Thresholds and rates for 2004-2012

First time buyer - individual

For the first seven years of relief the threshold is €10,000. From year eight onwards it becomes €3,000.

For example, if you bought your first principal residence in 2009, the threshold is €10,000 until 2015. In 2016 the threshold reduces to €3,000.

First time buyer thresholds and rates for 2004-2012
Year first PPR bought2012 Rate2013 Rate2014 Rate2015 Rate2016 Rate2017 Rate2018 Rate2019
2020
Rate

2012

25%

25%

22.5%

22.5%

22.5%

20%

20%

15%

2011

25%

22.5%

22.5%

22.5%

20%

20%

15%

15%

2010

22.5%

22.5%

22.5%

20%

20%

15%

15%

15%

2009

22.5%

22.5%

20%

20%

15%

15%

15%

15%

2008

30%

30%

30%

30%

30%

30%

30%

30%

2007

30%

30%

30%

30%

30%

30%

30%

30%

2006

30%

30%

30%

30%

30%

30%

30%

30%

2005

30%

30%

30%

30%

30%

30%

30%

30%

2004

30%

30%

30%

30%

30%

30%

30%

30%

Non-first time buyer - individual

The threshold is €3,000 and the rate is 15%.

First time buyer - married, in a civil partnership, widowed or a surviving civil partner

For the first seven years of relief the threshold is €20,000. From year eight onwards it becomes €6,000.

For example, if you bought your first principal residence in 2008 the threshold is €20,000 until 2014. In 2015 the threshold reduces to €6,000.

First time buyer (married, in a civil partnership, widowed or a surviving civil partner) thresholds and rates for 2004-2012
Year first PPR bought2012 Rate2013 Rate2014 Rate2015 Rate2016 Rate2017 Rate2018 Rate2019
2020
Rate

2012

25%

25%

22.5%

22.5%

22.5%

20%

20%

15%

2011

25%

22.5%

22.5%

22.5%

20%

20%

15%

15%

2010

22.5%

22.5%

22.5%

20%

20%

15%

15%

15%

2009

22.5%

22.5%

20%

20%

15%

15%

15%

15%

2008

30%

30%

30%

30%

30%

30%

30%

30%

2007

30%

30%

30%

30%

30%

30%

30%

30%

2006

30%

30%

30%

30%

30%

30%

30%

30%

2005

30%

30%

30%

30%

30%

30%

30%

30%

2004

30%

30%

30%

30%

30%

30%

30%

30%

Non-first time buyer - married, in a civil partnership, widowed or a surviving civil partner

The threshold is €6,000 and the rate is 15%.