Mortgage Interest Relief (Tax Relief at Source - TRS)

Thresholds and rates

Mortgage interest relief, which was due to cease at the end of 2017, was extended to the end of 2020 but on a tapered basis. This applies to all those who can claim the relief.

No relief will be available from 1 January 2021 onward.

There will be a reduction in the percentage of interest that will qualify for relief as follows:

  • 75% of the existing relief into 2018
  • 50% into 2019
  • 25% into 2020.

The interest thresholds or maximum amount of interest allowable for the three years will also be reduced.

Ceilings for the years 2018 - 2020 per Finance ACT 2017 changes. The ceilings relate to loans taken out between 2004 - 2012.

First Time Buyers - Loans taken out 2004 - 2012
Tax yearMarried, Civil Partner or widowedSingle
2018 €15,000 €7,500
2019 €10,000 €5,000
2020 €5,000 €2,500
Non-First time buyers - loans taken out 2004 - 2012
Tax yearMarried, Civil Partner or widowedSingle
2018 €4,500 €2,250
2019 €3,000 €1,500
2020 €1,500 €750

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

Thresholds and rates up to the end of 2020

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.

First time buyer

If you are a first time buyer, your threshold will reduce after seven years of claiming the relief.

For an individual, it reduces from €10,000 to €3,000.

For a those who are married, in a civil partnership, widowed or a surviving civil partner, it reduces from €20,000 to €6,000.

The tables below highlight the rates of relief from 2010. The rates prior to this date can be found in Tax and Duty Manual Part 08-08-08, in the Further guidance section. 

Rates of relief that apply for loans taken out between 2004 - 2012.

First Time Buyers - Loans taken out 2004 - 2012 (table covers the years 2010 - 2012)
Tax YearMarried/Civil Partner /widowedSingle

Finance Act 2010

Loans taken out

1/1/2004 – 31/12/2011

(note FA 2012 changes)

Relief @:

- 25% (year 1 and 2)

- 22.5% (year 3, 4 and 5)

- 20% (year 6 and 7)

Relief @:

- 25% (year 1 and 2)

- 22.5% (year 3, 4 and 5)

- 20% (year 6 and 7)

Finance Act 2012

Loans taken out

1/1/2012 – 31/12/2012

Relief @:

- 25% (year 1 and 2)

- 22.5% (year 3, 4 and 5)

- 20% (year 6 and 7)

Relief @:

- 25% (year 1 and 2)

- 22.5% (year 3, 4 and 5)

- 20% (year 6 and 7)

Finance Act 2012

Loans taken out 2004 - 2008

inclusive that are used to

purchase a person's first principal private residence (PPR)

or second PPR where first

PPR was purchased after 1/1/2004

Relief @ 30% from 2012 onwards Relief @ 30% from 2012 onwards

Non-first time buyer

If you are a non-first buyer, the ceiling for an individual is €3,000.

For those who are married, in a civil partnership, widowed or a surviving civil partnership, it is €6,000.

First Time Buyers - Loans taken out 2004 - 2012 (table covers the years 2010 - 2012)
Tax yearMarried, Civil Partner or widowedSingle

Finance Act 2010

Loans taken out 1/1/2004 - 31/12/2011

(note FA 2012 changes)

Relief @ 15% Relief @ 15%

Finance Act 2012

Loans taken out 1/1/2012 - 31/12/2012
Relief @ 15% Relief @ 15%

Finance Act 2012

Loans taken out 2004 - 2008 incl. that are used to purchase a person's principal private residence (PPR) or second PPR where first PPR was purchased after 1/1/2004

Relief @30% from 2012 onwards Relief @ 30% from 2012 onwards