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How to apply for the new Irish rent tax credit

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In the recent Irish budget for 2023, Finance Minister Paschal Donohue announced a new tax credit for renters in Ireland.

The rent tax credit will come as a relief to renters who have seen a steep rise in the cost of living in the country over the past few months.

But how exactly does it work and who can claim it?

In this blog post, we'll outline all you need to know about the new Irish rent tax credit!

What was announced in Budget 2023

When announcing Budget 2023, the Government highlighted their aim to lessen the overall burden of taxes on workers in Ireland.

Housing and renting were two of the key areas targeted by Government officials looking to offer tax breaks for workers.

As well as the new rent tax credit, the Help-To-Buy scheme has been extended until the end of 2024.

Here's what else was included in the Budget 2023 announcement!

What is the new Irish rent tax credit?

The new scheme aims to provide a new tax credit for renters in the private sector.

This means that it is only relevant to those who are not in receipt of other State housing supports such as HAP (Housing Assistance Payment).

As well as this, one credit can be claimed per tennant, so if there are five people renting a house, all five can claim the credit.

The credit can be claimed for payments made for an individual's principal private residence, on a residence that facilitates work or the residence of a qualifying child attending college.

Is this different from the original tax credit for renters?

Yes.

There was a previous relief that was available to be claimed at the standard rate of 20%, however, it phased out in 2017.

The figure has changed from a percentage to a fixed number for this relief.

How much is the Irish rent tax credit?

The new rent tax credit is worth €500 per year for a single individual and €1,000 for a married couple.

Currently, anyone who meets the criteria (more on that below) and is renting in Ireland at the moment can avail of it.

It is understood that nearly 40,000 people will be eligible to apply for it.

Is the new rent tax credit backdated?

The good news is that yes, the rent tax credit is backdated!

While it comes into place from the 2023 tax year up to 2025, it has been backdated for rent paid in 2022 also.

That means that if you rented property in 2022 it's a good idea to check if you can claim the credit.

The average Irish tax refund is €1,880

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How can I claim the rent tax credit?

There are two ways to secure this credit.

One of the ways to avail of this credit is applying through your MyRevenue account.

You must ensure that your landlord is registered with the Rental Tenancy Board for it to be relevant to you.

Taxback.com can also do it for you!

When we file your Irish tax return, we'll ensure you receive every tax credit that is applicable to you!

So, instead of worrying about what you need come tax time, you can sit back and relax knowing you will be fully compliant with Revenue.

Can I still claim the rent tax credit if I did not rent for the full year?

Yes - you will be happy to know you can!

The tax credit you receive will depend on the total rent you paid throughout the year. For example, if you only rented from March to April 2022 and paid a total of €1,000 rent the maximum credit you can claim is €200 (€1,000 x 20%) if you are single or jointly assessed.

However, the maximum credit for a single individual is €500 and €1,000 for a married couple.

How can Taxback.com help me?

At Taxback.com, we take all of the stress out of Irish taxes.

Of course, you can always file your taxes yourself.

However, when you use our service, we guarantee:

  • MAXIMUM Irish tax refund - We get every cent possible for our customers
  • Stress-free service - No complicated forms
  • FULL Irish tax compliance - We'll make sure everything is in place with Revenue


So, why not get a FREE refund estimation here?

About The Author

Rory Lynskey - Digital Content Executive @ Taxback.com

Rory is the Digital Content Executive at Taxback.com. Rory graduated from Technological University Dublin with a degree in Journalism in 2019, and has had his work published both online and in print at a national and regional level.

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