Ireland Landlord Mortgage Interest Relief 2027 Calculator

Calculate your Ireland landlord mortgage interest deduction for 2027 — fully restored to 100% from 2027 (vs 85% in 2024), reducing your net rental income for tax purposes.

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100% Restored from 2027

Successive Budgets restored mortgage interest deduction from the 75% cap (set in 2009) back up to 100% — phased: 80% 2023, 85% 2024-2025, 90% 2026, 100% 2027. This makes property investment viable again for higher-leverage rentals.

Deductible Against Rental

Mortgage interest paid in the year is deducted from gross rental income to arrive at net rental profit (Schedule D, Case V). Combined with allowable expenses (PRTB, repairs, agent fees, insurance), reduces taxable rental profit substantially.

Pre-Letting Expenses Now Deductible

Since 2017, pre-letting expenses up to €10,000 (raised from €5,000 in 2023) on vacant properties brought back into the rental market are deductible. Useful for properties out of rent for 6+ months.

High Income Tax Marginal Cost

Rental income at the 40% marginal income tax rate + 11% combined USC+PRSI = ~52% effective marginal tax. The mortgage interest deduction is worth 52¢ per €1, making it highly valuable at high income brackets.

Source: revenue.ie mortgage interest deduction restoration. Last updated: May 2026.