In December 2022, a new tax credit for renters was introduced. This tax credit applies to individuals who pay for private rented accommodation and is equivalent to 20% of the total rent paid during the year, up to a maximum of €500 per person. The maximum tax credit for couples jointly assessed for tax is €1,000.
The tax credit can be claimed for any rent paid during the year and applies to single individuals and couples.
What is the new tax credit scheme?
The new tax scheme is a tax break targeted at helping private tenants with the increased costs associated with property rental.
The scheme is available for the tax years 2022–2025. It is not a grant or a subsidy payment — it is designed to reduce the income tax that tenants of private rentals are due to pay. You can also claim your rent tax credit on your 2022 tax return.
How does the new rent tax credit scheme work?
The scheme entitles renters to reduce their income tax, essentially reducing their effective rent by €500 for individuals and €1,000 for couples making a joint application.
You no longer need to apply separately. Instead, you claim the tax break directly on your income tax return.
How much is the Rent Tax Credit?
The rent tax credit is limited to €500 per person or €1,000 for a couple. The scheme covers tax years 2022 to 2025.
What are the eligibility criteria for the Rent Tax Credit?
To be eligible, renters must pay rent on a private residential property in Ireland, with annual rent of at least €2,000 but no more than €20,000.
Renters must also meet the income thresholds: €40,000 for a single person and €80,000 for a couple or a single person with one or more dependent children.
To claim, renters must include the credit on their annual tax return, where it will be applied against their income tax liability.
The scheme is designed to provide targeted support to those who need it most. Renters already receiving other housing supports, such as the Housing Assistance Payment (HAP) or the Rental Accommodation Scheme, are not eligible.
Who is excluded from the tax credit scheme?
The tax break does not apply to payments related to:
- A security deposit or down payment
- Repairs or maintenance
- Board, laundry, or other auxiliary services
Your landlord must not be:
- A housing association or approved housing body
- Your parent
- Your child
What details do you need to claim?
You must provide evidence of your rental payments during the year. This may include rental agreements, rent receipts, or bank statements showing rent payments. You will also need proof of identity, such as a passport or driving licence, and your residency status.
How to claim the Rent Tax Credit
From 2022, you can claim your renter’s tax credit via your income tax return. If you’re paid via PAYE, claim through myAccount. Alternatively, self-assessed taxpayers can claim through Revenue Online Services (ROS).
Does the tenancy have to be registered with the RTB?
All tenancies must be registered with the Residential Tenancies Board (RTB), regardless of whether the tenant is entitled to the rent credit.
Can I claim the Rent Tax Credit if I receive HAP?
No. If you are in receipt of Housing Assistance Payments, you are unfortunately not entitled to the rental tax credit.
Do you get a tax credit for renting an apartment?
Eligibility is not determined by property type. What matters is whether you meet the eligibility criteria outlined above.
What other tax credits am I entitled to in Ireland?
All tax credits have their own criteria, but the main credits available via application include: Personal Tax Credit, Age Tax Credit, Blind Person’s Tax Credit, Dependent Relative Tax Credit, Employee Tax Credit, Home Carer Tax Credit, Incapacitated Child Tax Credit, Fisher Tax Credit, Sea-going Naval Personnel Tax Credit, Single-Person Child Carer Credit, and Widowed Parent Tax Credit.
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