The mortgage interest tax credit: 2026 is the final year

The mortgage interest tax credit is a temporary tax credit for people whose mortgage interest rose after 2022. It gives back 20% of the rise, up to €625 a year. It covers 2023, 2024, 2025 and 2026. Budget 2027 did not extend it, so 2026 is the last year.

This guide explains who it helped, how the credit is worked out, how to claim, and what to do now that it is ending. The mortgage repayment calculator shows how much of your payment is interest.

A worked example first

Paul has a variable rate mortgage on his home. In 2022 he paid €6,000 in interest. In 2026, after rate rises, he paid €8,500.

• The rise in interest is €8,500 less €6,000, which is €2,500.
• 20% of €2,500 is €500.
• €500 is under the €625 cap.

His credit for 2026 is €500. He claims it in 2027 by filing a return for 2026.

If his interest had risen by €4,000 instead, 20% would be €800. The cap would apply, and his credit would be €625.

Why the credit exists

The European Central Bank raised its rates sharply from 2022. Tracker mortgages, which follow the ECB rate, and variable rates rose with them. Many homeowners saw their interest bills climb by thousands of euro a year.

Budget 2024 introduced a one-year credit for 2023. Later budgets extended it to 2024, 2025 and 2026. It is in section 473C of the Taxes Consolidation Act 1997. Budget 2027, on 7 October 2026, did not extend it. The changes page records the decision.

The ECB's deposit rate has since come down. It was 2.50% from 16 September 2026. The Central Bank's average rate on new mortgages was 3.53% in August 2026. None of that is a forecast of where rates go next.

Who it helped

The credit was aimed at people whose interest actually rose. The conditions, in outline:

• You have a mortgage on your main home in the State.
• The outstanding balance at 31 December 2022 was within the range Revenue sets. Revenue's page gives the figures.
• You paid more interest in the claim year than you paid in 2022.
• You are compliant with Local Property Tax on the home.
• You paid income tax in the claim year.

People on a fixed rate that did not end in the period saw no rise in interest, so they had nothing to claim. The credit mostly helped tracker and variable rate holders, and people whose fixed rate ended and who refixed at a higher rate.

How the credit is worked out

The credit is 20% of the difference between the interest you paid in 2022 and the interest you paid in the claim year, capped at €625.

The credit is set against the income tax you paid. It cannot be more than your tax for the year.

If you took out your mortgage after 2022, there is no 2022 figure to compare with. Revenue's page explains how a part-year or a later start is treated.

How to claim for 2026

You claim in 2027, once the 2026 tax year has ended.

1. Get your mortgage interest statement for 2022 and for 2026 from your lender. Most lenders put them in online banking.
2. Log in to myAccount on Revenue's site.
3. Go to review your tax for 2026.
4. Complete an income tax return for the year.
5. Under tax credits and reliefs, choose the mortgage interest tax credit.
6. Enter the interest for 2022 and 2026, and upload the statements.
7. Confirm your Local Property Tax is paid.
8. Submit the return.

Revenue works out the credit and refunds it to your bank account. Self-employed people claim on the Form 11 through Revenue Online Service.

Claiming for earlier years

You can claim a credit for up to four years back. The credit began in 2023, so in 2026 you can still claim 2023, 2024 and 2025 if you have not. Each year needs its own return and its own interest statements.

A couple who are jointly assessed make one claim. Each needs to meet the conditions on their own part of the mortgage where they hold it separately.

What is ending and what is not

The mortgage interest tax credit ends with the 2026 tax year. Claims for 2026 can still be made in 2027, and for up to four years after.

The older mortgage interest relief, which ran on loans taken out before 2013, ended in 2020. It is a different relief and is not coming back under any announced plan.

Nothing in Budget 2027 changes the tax treatment of a mortgage on your main home otherwise. There is no tax relief on the repayments or the interest for 2027 onwards.

What to do once it ends

The credit was worth at most €625 a year. For many people, the larger saving sits in the rate itself.

Since 24 March 2026, under the Consumer Protection Code 2025, a lender must tell you what you could save on a lower rate it offers, including when a fixed rate ends. That letter is worth reading. The switching journey lays out the steps to compare your rate with others, and the mortgage rates comparison shows what each lender charges.

If your interest has risen and the payments are a strain, the free routes come first. MABS, the Money Advice and Budgeting Service, is free and confidential. The money help page lists MABS and the other supports.

Where this leaves you

See how much of your payment is interest, and how that changes year by year, on the mortgage repayment calculator. Then file your return for 2026 in the new year with both interest statements. The switching journey is the next step if your rate is the bigger cost. The rent tax credit guide covers the other housing credit, and the first-time buyer grants guide lists every scheme on one page.