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.
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.
Frequently Asked Questions
Why was MI deduction restricted in 2009?
Post-financial-crisis budget measure to raise revenue. Originally 75% cap; gradually restored as the property market recovered. Full restoration 2027.
Does this apply to commercial property?
No — commercial property mortgage interest was always fully deductible. The restriction was only on residential rental property.
What's the difference for non-resident landlords?
Same deduction rules. Non-residents have 20% withholding tax obligation on gross rent paid to overseas accounts unless tenant has a Collection Agent appointed.
Can I deduct mortgage on a property I once lived in?
Yes — when you change use from owner-occupied to rental, the interest from that point becomes deductible. Need accurate apportionment if both uses overlap in a year.
Is my data private?
Yes. All calculations run in your browser. Inputs are never sent, stored, or shared.