Who qualifies
A homeowner with a qualifying mortgage on their principal private residence who saw their interest costs increase between 2022 and 2026 due to ECB rate rises.
How to claim
Claim on myAccount under Manage Your Tax, Mortgage Interest Credit, attaching your annual mortgage statements for both 2022 and 2026 to evidence the interest difference.
Detailed explanation
Mortgage Interest Tax Credit was reintroduced in Budget 2024 and extended in Budget 2026 to support homeowners hit by the rapid rise in ECB rates from 2022 onwards. From 2026 the credit is worth up to 1,250 euro per year, calculated as 20 percent of the increase in mortgage interest paid in 2026 compared with 2022, capped at an interest increase of 6,250 euro. The qualifying property must be the claimant principal private residence located in Ireland, with an outstanding mortgage balance between 80,000 and 500,000 euro at the end of 2022. Both fixed and variable rate mortgages qualify, including tracker mortgages where the rate has reset. Buy-to-let mortgages are excluded, as are second homes. Where joint owners hold the mortgage, the credit is split based on the proportion of interest paid by each. The credit is non-refundable and can only reduce income tax due to zero. From 2026 onwards the relief continues for one further year as a transitional measure following the original two-year window. Claimants must upload mortgage interest certificates for both 2022 and the relevant tax year showing total interest paid. The relief does not apply to capital repayments, only to the interest portion. Customers of mortgages that have been sold to non-bank lenders such as vulture funds remain eligible provided the loan continues to relate to the principal private residence.
Worked example
Stephen and Lisa paid 4,200 euro of mortgage interest in 2022 and 9,800 in 2026 on their Dublin home. The increase is 5,600 euro, all within the 6,250 cap. Credit at 20 percent = 1,120 euro, applied directly to their joint income tax bill via the 2026 Statement of Liability.