Dáil Éireann Debate, Thursday - 25 June 2026
66. Deputy Joe Cooney asked the Tánaiste and Minister for Finance the number of Clare homeowners that availed of mortgage interest relief in 2024 and 2025; if he would consider using the POBAL deprivation index as a mechanism to extend it in a targeted way for Budget 2027; and if he will make a statement on the matter. [48245/26]
View answerFinance Act 2023 introduced Mortgage Interest Tax Relief (MITR). MITR was originally made available for the 2023 year of assessment.
The relief is available to homeowners with an outstanding mortgage balance between €80,000 and €500,000 as of 31 December 2022. The relief extends to a qualifying property located in the State which is the sole or main residence of the individual’s former or separated spouse or civil partner or a dependent relative. Furthermore, the taxpayer must be compliant with Local Property Tax requirements. The relief operates by way of a credit offset against the taxpayer’s income tax liability.
In Finance Act 2024, the relief was extended to include the 2024 tax year. Subsequently, to continue to provide support to mortgage holders who have experienced increased interest rates since 2022, Finance Act 2025 provided for a further two-year extension of the relief.
The relief is available in respect of the increase in interest paid in 2023, 2024 and 2025 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax (20%) is capped at €6,250 per property. This is equivalent to a maximum tax relief of €1,250 per property per annum. A reduced level of relief will apply in relation to the extension to 2026. Accordingly, the relief is available in respect of half of the increase in interest paid in 2026 over interest paid in 2022, and the value of the relief is equal to the lesser of 20% of the eligible increase or €625, applying on a per property basis.
I am informed by Revenue that 2023 is the first year for which MITR is claimable, and the latest year for which data are currently available for analysis. Data for 2024 will be available in the coming weeks. Data in relation to 2025 will not be available for analysis until mid-2027 as the filing deadline for self-assessed taxpayers in relation to 2025 is November 2026.
In 2023 there was 1,070 taxpayer units in Clare who benefitted from the MITR. A taxpayer unit refers to individuals except in the case of couples who are jointly assessed, in which case the couple are counted as one taxpayer unit.
I believe the relief, as it is currently structured, is appropriately designed and measured.
Finally, as the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances.
