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Rent Tax Credit

  1. Overview
  2. Qualifying conditions for all claimants
  3. Further conditions where property is used as principal private residence
  4. Further conditions where property is used as second home
  5. Further conditions where property is used by your child
  6. How much can you claim?
  7. How to claim

How much can you claim?

The Rent Tax Credit reduces the amount of Income Tax that you are due to pay for a tax year.

To benefit from the Rent Tax Credit, you must have an Income Tax liability to offset against it. The credit does not provide relief against Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

If the credit due exceeds your Income Tax liability, you will not be able to fully utilise the credit.

Tax relief is granted at 20%. The maximum amount you can be refunded, from the Rent Tax Credit, is:

  • €1,000 for a jointly assessed couple
  • or
  • €500 for all other cases.

If the rent tax credit exceeds your Income Tax liability, you can only receive a partial refund. This refund would be equal to your total Income Tax liability for the year.

  • Example 1

    Jane is single and made rent payments of €1,000 a month in 2022. Jane’s Income Tax liability for 2022, after all other credits, reliefs and allowances, was €16,500.

    Jane satisfies all conditions of the Rent Tax Credit. Jane will be entitled to a credit of €500 in 2022, being the lower of: 

    Jane's Rent Tax Credit
    DescriptionAmount 
    The total of all rent payments made by Jane of €12,000 at 20% €2,400
    The specified amount of €2,500 at 20% €500
    The amount required to reduce Jane’s Income Tax liability to nil €16,500
  • Example 2

    Ciarán and Seán are a jointly assessed couple and made rental payments of €1,000 a month in January and February 2023.

    Ciarán is the assessable spouse and the couple’s Income Tax liability for 2023, after all other credits, reliefs and allowances, was €24,000.

    Ciarán satisfies all conditions of the Rent Tax Credit. Ciarán will be entitled to a credit of €400 in 2023 being the lower of:

    Ciarán's Rent Tax Credit
    Description Amount
    The total of all rental payments made by Ciarán and Seán of €2,000 at 20% €400
    The specified amount of €5,000 at 20% €1,000
    The amount required to reduce the couple’s Income Tax liability to nil. €24,000 
  • Example 3

    Ben is a single person and made rent payments of €400 a month between January and April 2022. Ben was made redundant in April 2022 and did not re-enter employment for the rest of that year.

    Ben’s Income Tax liability for 2022, after all other credits, reliefs and allowances, was €120. Ben satisfies all conditions of the Rent Tax Credit. Ben will be entitled to a credit of €120 in 2022, being the lower of:

    Ben's Rent Tax Credit
    DescriptionAmount
    The total of all rent payments made by Ben of €1,600 at 20%, €320
    The specified amount of €2,500 at 20% €500
    The amount required to reduce Ben’s Income Tax liability to nil €120

Next: How to claim

Published: 20 March 2023 Print this page

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