What is new mortgage relief scheme? You can claim €1,250 back from payments today

The Minister for Finance Michael McGrath TD has announced that PAYE taxpayers can submit claims in respect of Mortgage Interest Relief for 2023.

From today, Wednesday, January 31 homeowners can claim the relief hrough Revenue’s myAccount service.

In last October's Budget, Minister McGrath announced the introduction of a temporary one-year Mortgage Interest Tax Relief scheme up to a value of €1,250.

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.

It is estimated there are approximately 208,000 mortgages eligible for the relief. The projected cost is €125 million on a once off basis.

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.

Speaking today, Minister McGrath said: “The Government is acutely conscious of the impact increases in interest rates have had on many mortgage holders. In light of this, I introduced a temporary one year, targeted Mortgage Interest Tax Relief scheme as part of Budget 2024.

"This forms a further element of a comprehensive package of cost of living supports in Budget 2024 which include energy credits, income tax and USC reductions, and welfare increases which are helping households throughout the country. I am pleased to announce that PAYE taxpayers can now submit a claim for this relief by logging on to Revenue’s myAccount service and filing an income tax return for 2023. Self-assessed taxpayers will be able to claim the relief in mid-February.

"Last week, I launched a public information campaign to raise awareness among taxpayers of the range of tax credits and reliefs available and how they can claim those credits and relief. As I have stated many times, I encourage all taxpayers to avail of the full suite of credits and reliefs available to them, including Mortgage Interest Tax Relief.”