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What is the Mortgage Interest Tax Credit in Ireland – and How Can You Apply?

The Mortgage Interest Tax Credit (MITC) was introduced by the Irish Government in Budget 2024 to ease the financial burden on homeowners in Ireland. It is thought that just under 200,000 people in Ireland are entitled to claim the credit. However, many property owners are unsure of the steps involved in claiming the credit. In this article. we’ll explore what exactly the MITC is, as well as who can claim it and how to do so.

a model of a house

What is the Mortgage Interest Tax Credit?

The MITC, also known as the Mortgage Interest Relief, is a credit that was introduced in October 2023 as part of the Budget 2024.

It was one of several tax reliefs and credits introduced to help Irish taxpayers manage the challenges of inflation and the rising cost of living.

The credit applies to certain individuals who own property in Ireland, and can offer valuable tax relief on a mortgage.

How many years can I claim the Mortgage Interest Credit for?

While it’s true that you can claim certain tax reliefs such as tuition fees and medical expenses over a four-year period, the same does not apply to the MITC.

This expense is only able to be claimed for the 2023 tax year.

However, the maximum relief amount is quite high (see below) so it’s well worth checking what you’re due back.

Who can claim the Mortgage Interest Credit?

This particular relief is available to taxpayers who are paying back mortgages with balances of between €80,000 and €500,000 as of 31 December 2022.

It is available for the 2023 tax year only and is based on the increase in interest paid in 2023 over interest paid in 2022.

The increase is subject to a cap of €6,250, and it will qualify for relief at the standard rate of Income Tax (20%).

Essentially, this means that the maximum you can receive is €1,250 per property.

So, can I apply for the MITC?

While no two people have the same mortgage circumstances, there are general guidelines to help you understand if you can claim the relief.

For example:

Can I claim the MITC if I have a fixed-rate mortgage?

While people with trackers and variable-rate mortgages will be eligible to claim this credit, it has not been completely clear whether it applies to those with fixed-rate mortgages.

Thankfully, if you have a fixed rate and re-fixed at a higher rate for 2023, you may be eligible to get the relief.

How do I apply for the MITC?

If you meet the conditions to apply for the MITC, you can apply for the relief via the Revenue website.

If you would rather someone else handle the paperwork on your behalf, Small Business Payroll can take care of your application ensuring you get the maximum refund applicable.

How can Small Business Payroll help me?

When you apply with Small Business Payroll you will ensure you get your maximum Mortgage Interest Tax Credit refund due, as well as any other tax refunds you may be due.

We will do this by analysing your specific tax situation, taking into account other tax reliefs and credits that may apply to you such as dental trips and tuition fees.

Get in touch with our team today.