Fianna Fáil TD for Cavan Monaghan Niamh Smyth, has received confirmation from the Minister for Finance Michael McGrath that the mortgage tax credit of €1,250, as announced in Budget 2024, can be claimed by eligible homeowners in early 2024.
Deputy Smyth said, "The Finance Bill 2023 introduces the new Mortgage Interest Tax Relief, which is aimed at offsetting the impact of successive interest rate hikes from the European Central Bank for some homeowners.
The credit will be available in respect of the 2023 tax year only and is based on the increase in interest paid in 2023 over interest paid in 2022.
Deputy Smyth continued by saying that this excess interest figure will be subject to a cap of €6,250 and will qualify for relief at the standard rate of 20% income tax meaning the maximum tax credit will be €1,250 per property.
Those eligible to apply will have had an outstanding mortgage balance on their primary dwelling house of between €80,000 and €500,000 at the end of last year.
Revenue has published detailed guidance on this measure setting out the conditions for relief and how to claim the tax credit.
