IE Landlord Mortgage Interest Deduction 2027 Calculator
Since 2017, Irish landlords can deduct 100% of mortgage interest against rental income. Additional retrofit/energy-efficient relief under Section 97A — calculate total deductible.
| Gross rent | — |
| Mortgage interest | — |
| Section 97A retrofit interest | — |
| Other expenses | — |
| Total deductible | — |
| Taxable profit | — |
| Marginal tax rate | — |
| Income tax + USC + PRSI | — |
| Section 97A tax saving | — |
| After-tax cashflow | — |
Irish landlords can fully deduct mortgage interest against rental income — phased reintroduction 2017-2019 restored 100% deductibility (previously capped at 75%). Section 97A adds extra relief for retrofit/energy-efficient improvements financed by loan: another 100% deduction on retrofit-related interest.
How the 100% Restoration Works
From 2019, 100% mortgage interest deductibility restored for all residential rental properties. No cap. Applies to ALL mortgages, not just BTL. Pre-2017 properties: 75% deduction; from 2019: 100%. Documentation: Revenue requires loan statement + nexus to rental property.
Section 97A Retrofit Relief
Loan-financed retrofit upgrades (insulation, heat pump, solar, EPC improvement) generate additional interest deduction. Cap: up to €5,000/yr deduction or actual interest. Property must be let to qualifying tenant (RTB-registered). Save at marginal rate (typically 52%).
Other Allowable Deductions
Property management fees, repairs, insurance, capital allowances on furnishings (12.5%/yr × 8 years), legal/accounting fees, utilities paid (if included in rent), advertising, RTB registration, PRTB fees. Capital improvements: NOT deductible (claim via capital allowance instead).
USC and PRSI on Rental
Rental income subject to: income tax (20% standard up to €40K, 40% above for 2026), USC (typically 0.5%/2%/4.5%/8%), and PRSI (4%). Combined marginal: 52% for higher-rate taxpayers. Tax-efficient structuring: rental into pension via AVC if active worker.
Last updated May 2026. Sources: Revenue Rental Income, Revenue Section 97A.