Mortgage Interest Relief in Ireland

With rising mortgage interest rates continuing to put pressure on Irish households, one of the most welcome announcements in Budget 2024 was the reintroduction of Mortgage Interest Relief.

This relief, available for the 2023 and 2024 tax years, is designed to support homeowners who have seen significant increases in their mortgage costs compared with 2022.

In this detailed guide, we’ll explain:

• What Mortgage Interest Relief is
• Who qualifies and how much you can claim
• How to apply for the relief
• Common pitfalls to avoid
• Why using a tax adviser like Irish Tax Hub can make the process easier and more transparent

What Is Mortgage Interest Relief?

Mortgage Interest Relief allows eligible homeowners to claim back part of the increased interest they’ve paid on their mortgage. It works as a tax credit that directly reduces your income tax bill.

This isn’t the first time Irish taxpayers have had access to this type of relief. A broader version existed for decades before being fully phased out in 2020. The difference now is that the relief is targeted and time-limited, focused on those hit hardest by interest rate hikes.

Why Was Mortgage Interest Relief Reintroduced in 2024?

From 2022 onwards, many Irish households faced repeated European Central Bank interest rate increases, which filtered down into higher monthly mortgage repayments.

• A household with a €250,000 mortgage might have seen monthly payments increase by several hundred euro.
• For many, this created serious financial pressure.

To address this, the Government reintroduced Mortgage Interest Relief in Budget 2024, applying to interest paid in 2023/2024 compared with 2022 levels.

The goal is simple: to put cash back into homeowners’ pockets and offset some of the impact of higher borrowing costs.

Who Qualifies for Mortgage Interest Relief in Ireland (2024/2025)?

Not every mortgage holder will qualify. The relief is targeted with specific eligibility criteria:

• The mortgage must be on your principal private residence (your main home).
• The mortgage must have been drawn down before 31 December 2022.
• Relief applies only where your mortgage balance is between €80,000 and €500,000.
• You must have paid more interest in 2023/2024 than in 2022 due to rate increases.

❌ Relief does not apply to:

• Buy-to-let or investment properties.
• Mortgages taken out in 2023 or later.
• Loans outside the €80,000–€500,000 range.

How Much Relief Can You Claim?

The maximum credit available is €1,250.

The relief is calculated at 20% of the increased interest paid in 2023/2024 compared with 2022.

Example 1 – Mid-sized Mortgage

• Interest paid in 2022: €6,000
• Interest paid in 2023: €8,500
• Increase: €2,500
• Relief: 20% × €2,500 = €500 tax credit

Example 2 – Larger Mortgage

• Interest paid in 2022: €10,000
• Interest paid in 2023: €15,000
• Increase: €5,000
• Relief: 20% × €5,000 = €1,000 (under the €1,250 cap)

Example 3 – Maximum Cap

• Increase in interest: €8,000
• Relief: 20% × €8,000 = €1,600
• Relief granted = €1,250 (capped)

This tax credit is applied against your income tax liability when you file your tax return.

How to Claim Mortgage Interest Relief

To claim Mortgage Interest Relief, you must:

1. Obtain your mortgage interest statements for 2022, 2023, and 2024. These must come from your lender and show the interest portion only, not the full repayment.
2. File an income tax return (Form 12 for PAYE taxpayers, Form 11 for self-assessed).
3. Even if you’re a PAYE worker who normally doesn’t file, you’ll need to in order to claim this credit.
4. Input the relevant figures into Revenue’s online system (MyAccount or ROS).
5. Submit your return, and Revenue will apply the tax credit against your liability.

Common Mistakes to Avoid

• Not filing at all: Many PAYE workers assume they don’t need to file a tax return. Without filing, you won’t get the credit.
• Using the wrong figures: Revenue needs the interest-only portion of repayments, not capital plus interest.
• Joint mortgages: Relief is divided between borrowers. Each person may need to file their own return.
• Mixing with rental reliefs: Mortgage Interest Relief applies only to your home. Rental property interest is handled separately under rental income rules.

Why Use Irish Tax Hub to Claim Mortgage Interest Relief?

While Revenue’s system makes it possible to claim the relief yourself, the process can be confusing - especially if you’re not used to filing a return. That’s where Irish Tax Hub comes in.

Here’s how we help:

• ✅ Flat-fee service – No percentage-based fees. You know the cost upfront.
• ✅ Accurate filing – We ensure the correct figures are submitted, avoiding Revenue queries.
• ✅ Maximised savings – While claiming your Mortgage Interest Relief, we’ll also check for other tax credits and reliefs you might be entitled to (e.g. medical expenses, rent credit, tuition fees).
• ✅ Peace of mind – We liaise with Revenue on your behalf, making the process stress-free.

Final Thoughts

Mortgage Interest Relief is one of the most important personal tax measures in Ireland right now. For many households, it could mean hundreds of euro back in their pocket at a time when every cent counts.

But like all tax measures, the relief comes with conditions, limits, and a need for proper filing. By working with Irish Tax Hub, you can be sure your claim is handled accurately, transparently, and cost-effectively - so you get the maximum benefit without the headache.

👉 File your claim with Irish Tax Hub today