Mortgage interest relief in Ireland: your 2026 guide

In Ireland, mortgage interest relief is available via a temporary tax credit that’s designed to support Irish homeowners. The Mortgage Interest Tax Credit provides financial help if your mortgage interest payments have increased recently.

This new credit is different from the previous Mortgage Interest Relief (Tax Relief at Source, or TRS). With TRS, lenders would reduce monthly mortgage payments in accordance with the amount of tax relief. The current Mortgage Interest Tax Credit is a temporary measure, and you claim back your tax relief through Revenue at the end of the year.

Relief is calculated using the standard rate of tax, which is 20%. The increase in your mortgage interest payments since 2022 will govern how much you can claim back.

The Mortgage Interest Tax Credit was originally a temporary measure introduced in the Finance Act 2023, but it was extended to include 2024 the following year. Subsequent Budget announcements extended the scheme to include the years 2025 and 2026.

For 2026, your tax credit will now be calculated based on 50% of the increase in interest payments since 2022 as relief is tapered down.

Here’s a summary of the changes:

Retroactive claims for past years (2023–2025)

If you qualified in an earlier year but have not yet claimed, you can still apply within Revenue's standard 4-year statutory limit. The higher €1,250 maximum limit remains in place for claims relating to the 2023, 2024, or 2025 tax years.

You need to meet specific criteria to qualify for tax relief. Here is the eligibility criteria for the scheme:

• Increasing interest: The amount of interest you paid in the year you are claiming for must have been higher than you paid in 2022. 

• Loan balance requirements: Your outstanding mortgage balance must have been between €80,000 and €500,000 on 31st December 2022. Based on current regulatory patterns, the standard interpretation is that the loan must have been used exclusively to purchase, repair, or improve your home. If you used an equity release or mortgage top-up to buy a car or fund non-property expenses, the interest on that portion of the loan does not qualify.

• Principal private residence: The property you have purchased with a mortgage must be your primary residence, meaning the place where you ordinarily live. It should also be your only home. Under Revenue guidelines, the relief also applies if the property is the sole residence of a dependent relative (provided rent-free) or a former/separated spouse/civil partner.

• Qualifying lender: The mortgage must be a qualifying loan with a lender recognised by the Central Bank of Ireland, or authorised to operate in the State

• Tax: You must have paid income tax during the period of your claim, as the credit can only be offset against your income tax liability. It cannot be offset against the Universal Social Charge (USC) or Pay Related Social Insurance (PRSI). If your calculated credit is higher than your Income Tax bill, your refund is capped at your total income tax amount. You must also be compliant with local property tax obligations.

• Location: The property you have a mortgage on must be located within Ireland. 

Be aware that any outstanding Local Property Tax (LPT) arrears or unresolved planning permission issues will trigger an automatic block on your Mortgage Interest Tax Credit application within the Revenue system.

You can claim tax credits online once you have your documents ready. Before you start the process, make sure you know how to complete a tax return in Ireland.

Here is the process to claim mortgage interest relief using the Revenue myAccount or ROS portals:

• Gather your required documents. You will need your Certificate of Mortgage Interest for 2022, your certificate for the year you are claiming, and confirmation of your mortgage balance as of 31st December 2022. You can obtain these documents in advance from your mortgage provider. Lenders typically issue the mandatory Certificate of Mortgage Interest automatically in January or February of the following year. If you switched lenders (e.g., your loan transferred from Ulster Bank to another provider), you must request separate certificates from both institutions covering their respective periods.

• Log in to your Revenue myAccount if you are a PAYE worker, or the ROS portal if you are self-assessed.

• Navigate to the section where you can manage your taxes. In myAccount, click on Review your Tax and request a Statement of Liability for the relevant year. In ROS, click on File Return for Income Tax.

• Start your Income Tax Return. Proceed to the Tax Credits and Reliefs section, select the you and your family tab and select the Mortgage Interest Tax Credit option.

• Upload your supporting mortgage documents when prompted by the system.

• Complete the process and submit your tax return to Revenue for assessment.

If you remortgaged or your loan was sold to a new provider (such as those exiting the Irish market), you must calculate the total interest paid across all accounts. Crucially, you still need your 2022 baseline Certificate of Mortgage Interest from your original lender to validate the claim.

Here are some examples of how the calculation works when claiming your tax relief:

• Example 1: In 2022, you paid €3,000 in interest. In 2024, you paid €5,000 in interest, totalling a difference of €2,000. 20% of €2,000 is €400, so this is the amount you could claim. 

• Example 2: In 2022, you paid €2,000 in interest. In 2025, you paid €8,500 in interest, totalling a difference of €6,500. However, the maximum qualifying amount is capped at €6,250, so you would complete your calculation based on this. 20% of €6,250 is €1,250, so this is the amount you could claim.     

• Example 3: In 2022, you paid €2,000 in interest. In 2026, you paid €3,000 in interest, totalling a difference of €1,000. You divide this number by two to get €500. 20% of €500 is €100, so this is the amount you could claim. 

• Example 4: In 2022, you paid €2,000 in interest. In 2026, you paid €9,000 in interest, totalling a difference of €7,000. You divide this number by two to get €3,500. However, the maximum qualifying amount is capped at €3,125, so you would complete your calculation based on this. 20% of €3,125 is €625, so this is the amount you could claim. 

If you sold your property, closed your mortgage account, or began your mortgage partway through the claim year, Revenue calculates your relief on a pro-rata basis. The maximum eligible caps (€3,125 for 2026) are reduced proportionately based on the exact number of days the qualifying loan was active during the year.

Using a mortgage interest relief calculator can also help you work out your potential refund.

Once you receive your tax credit, you might want to consider your next financial steps. Raisin is a free savings platform that allows you to access and compare competitive interest rates from trusted partner banks across Europe. Whether you prefer a flexible demand deposit account or a fixed term deposit, we track European savings rates so you don't have to. Your funds are protected up to €100,000 per bank, per depositor under the bank’s national statutory Deposit Guarantee Scheme (DGS).