Smyth: Mortgage interest tax relief scheme opens today
PAYE workers are being encouraged to claim for tax relief on mortgage interest relief.
Finance Minister, Michael McGrath confirmed that as of today, January 31, claims for tax relief scheme for 2023 can be submitted through Revenue's myAccount service.
More than 200,000 mortgage holders are eligible for the temporary one-year relief up to the value of €1,250. It was announced by Minister McGrath in Budget 2024.The projected cost is €125 million on a once off basis.
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.
Mortgage Interest Tax Relief is available for home owners 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.
Value of the relief will be equal to 20% 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. Revenue’s systems will carry out the calculation of the relief at the point of claim.
Commenting on the relief scheme, Fianna Fáil TD Niamh Smyth said: "Fianna Fáil is committed to addressing the impact of interest rate hikes on many mortgage holders. This once-off temporary measure, introduced in Budget 2024, will help more than 200,000 PAYE mortgage holders, many of whom have experienced increases in interest rates.
"I would encourage anyone who is eligible to claim the relief, which is valued at up to €1,250, to log onto myAccount on Revenue.ie and submit their claim."
To claim this tax relief, taxpayers should file a 2023 Income Tax Return and upload their certificate of mortgage interest for 2022 and 2023, and confirmation of their mortgage balance at 31 December 2022. The easiest way for PAYE taxpayers to claim the relief is to log into “myAccount”. Self-assessed taxpayers will be able to claim the relief through “ROS” in mid-February.
Self-assessed taxpayers will be able to claim the relief in mid-February.