Property · Calculator companion · By K Imports
Mortgage Interest Tax Credit: practical guide
This guide explains how to use the Count.ie mortgage interest tax credit. Compare full-year interest with 2022, apply the claim-year cap and available Income Tax. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Mortgage Interest Tax Credit calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
- Claim year
Options: 2023; 2024; 2025; 2026.
The calculation method
For 2023–2025: 20% of positive interest increase, capped at €1,250. For 2026: 20% of 50% of the increase, capped at €625. Limit the claim to available Income Tax.
Worked example
Illustrative inputs and their result.
Example inputs
- Claim year
- 2026
- Outstanding qualifying balance on 31 December 2022 (€)
- 250000
- Full-year interest paid in 2022 (€)
- 10000
- Full-year interest paid in claim year (€)
- 14000
- Income Tax liability available to offset (€)
- 2000
- Full-year loan, qualifying residence, LPT and tax-compliance conditions confirmed
- Yes
Calculated example result
- Available Credit
- €400.00
- Calculated Credit
- €400.00
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
One claimant, one qualifying residence, full-year loans only. Part-year interest, multiple claimants, refinancing/additional borrowing and property eligibility need Revenue assessment. No USC or PRSI relief.
Rules checked . Baseline rules year: 2026. Reviewed scope: Full-year claims 2023–2026; 2026 relief halved. This does not verify every selectable year, date or Budget announcement profile.
Sources and further information
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.