Reminder to apply for Mortgage Interest Tax Relief scheme for 2023 – Higgins
6th February 2024
Fine Gael TD for Dublin Mid West Emer Higgins has reminded constituents that PAYE taxpayers can now submit claims for Mortgage Interest Relief for 2023. Self-assessed taxpayers will be able to claim the relief in mid-February.
“If you have a mortgage of between €80,000 and €500,000 you may be eligible for a tax relief. PAYE taxpayers can claim it now by logging into Revenue’s myAccount and filing a 2023 Income Tax Return. Self-assessed taxpayers can do the same from mid-February.
The relief is based on your mortgage as of 31st December 2022 and covers homeowners who up to date on their Local Property Tax. It could be worth up to €1,250 depending on how much your mortgage repayments have increased due to interest rate hikes,” said Higgins.
“I know this is a really welcome relief for many mortgage owners who have seen their interest rates increase and I encourage everyone who is eligible to submit their tax return. Over 200,000 mortgages are eligible for the relief,” concluded Higgins.
Minister McGrath said “the Government is acutely conscious of the impact increases in interest rates have had on many mortgage holders. In light of this, I introduced a temporary one-year, targeted Mortgage Interest Tax Relief scheme as part of Budget 2024.
“This forms a further element of a comprehensive package of cost of living supports in Budget 2024 which include energy credits, income tax and USC reductions, and welfare increases which are helping households throughout the country.”
In Budget 2024, the Minister for Finance Michael McGrath T.D. announced the introduction of a temporary one-year Mortgage Interest Tax Relief scheme up to a value of €1,250. The tax relief is at the standard rate of income tax and is based on the increase in interest paid in 2023 over interest paid in 2022.
Notes for editors
· Under the terms of the scheme, Mortgage Interest Tax Relief is available for homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022 and who are compliant with Local Property Tax requirements.
· The value of the relief will be equal to 20 per cent of the increased interest paid in 2023 compared to 2022, or €1,250, whichever is the lesser.
· Where the interest payments made in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating of the relief will apply, to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly. Revenue’s systems will carry out the calculation of the relief at the point of claim.
· Further details about Mortgage Interest Tax Relief and the claims process are outlined on Revenue’s website, with a direct link to the information on the homepage – www.Revenue.ie