Did you know that a quarter of all PAYE workers’ pay too much tax on their income every year?
That’s according to Revenue figures released in October 2024.
So, if it has been a while since you last investigated your tax entitlements, you’ve landed in the right place!
The average PAYE refund is €1,880.
And, as always, Team Taxback is here to help you investigate what your entitled to.
In this blog, were going to look at some of the most common tax reliefs which are all too often forgotten by workers in Ireland.
Key task deductions to know in 2025!
If you are unaware or even unsure of what you can claim tax relief on, here are some tax deductions that may be applicable to you.
Table of Contents Show
Home carer tax credit
If you are married or in a civil partnership and care for a dependent person, you can apply for the home carers tax credit.
The home carer tax credit will increase in July 2025. The tax credit for home carers is worth €1,950.
Who can qualify?
To qualify for the home carers tax credit, at least one spouse or a civil partner must care for a dependent individual.
If you earn less than €7,200, you can claim the tax credit in full. Meanwhile, if you earn more than €7,200, you will receive a reduced tax credit which will be calculated based on your income.
How is a dependent person defined?
- A child who is receiving/eligible for child benefit payments.
- Someone who is the age of 65 or above
- Someone who needs assistance because of a lasting inability caused by a physical or mental disability
The average Irish tax refund is €1,880
Work from home tax relief
Did you know that you can claim tax relief if you work from home?
Working from home involves:
- Logging onto a computer system
- Sending and receiving emails, files or data
- Developing ideas, services or products
Remember, this does not include any afterhours work that you may bring home.
Who can qualify?
If you work from home for substantial periods of time as a part-time or full-time employee, with agreement from your employer.
You must be able to perform tasks at home.
You can claim tax relief on?
- Broadband
- Electricity
- Heating
You can find more information here!
Medical expense tax relief
Did you know that you can claim tax relief on medical expenses you pay for yourself or for anyone else?
But beware! You must claim tax relief within the four years following the year in which you paid for the healthcare.
What can I claim tax on?
Here are some examples of common medical expenses which qualify for tax relief:
- Doctor and consult fees
- Maintenance or treatment in a hospital or other facilities
- Transport by ambulance
- Employing a qualified nurse at home
- Treatment from a psychologist or psychotherapist
- Acupuncture
- Maternity care
- Speech and language therapy
- In-vitro fertilization
- Kidney patients’ expenses
- Educational psychological assessments
- And more
There are different criteria to meet when claiming tax relief on your medical expenses.
You can find more detailed information about claiming medical expenses at here!
Mortgage interest tax credit (MITC)
What is it?
The MITC was introduced to help mortgage holders who have experienced significant increases in mortgage interest rates.
Who can qualify?
The tax relief is available to taxpayers with mortgage balance of between €80,000 and €500,000.
Pension contribution tax relief
What is it?
Have you got a personal pension? Did you know that you can claim tax relief on your personal pension contributions?
Before we explain more, there is an important distinction to make.
If you participate in a pension scheme at work, you will receive tax relief at source. However, if you have a personal pension which you have set up outside of your employment, you are entitled to claim tax back.
Income tax relief is given at your highest tax rate (20% or 40%).
The following pension plans may qualify for tax relief:
- Occupational pension schemes
- Personal retirement savings accounts (PRSAs)
- Retirement Annuity Contracts (RACs)
- Pan-European Personal Pension Products (PEPPs)
- Qualifying overseas plans
The average Irish tax refund is €1,880
Tuition fee tax relief
The cost of tuition, coupled with additional living expenses, can put a significant burden on families.
Claiming tuition fee tax relief, is a financial aid offered by Revenue
What can I claim?
- Undergraduate course (at least two years duration)
- Postgraduate courses (at least one academic year, maximum four years)
- IT and foreign language courses (less than two years duration)
What can I not claim on?
- Administration fees or examination
- Tuition fees that are met by a scholarship or where the fees are reimbursed by an employer
Tax relief is granted at 20%.
However, there is a limit of fees at €7,000 per course. there is also no tax relief on the first €3,000 (full time course)/ €1,500 (part-time course)
This tax relief allows parents and/or students to claim back a portion of their tuition fees paid for third-level education.
You can find more information here!
Rent tax credit
Wondering if you can claim rent tax credit? Here is everything you need to know:
What is it?
The scheme is aimed to provide a tax credit for anyone who rents in the private sector.
This tax credit was introduced in Budget 2023 to support workers in managing the rising cost of property rent.
Approximately 400,000 renters around Ireland are eligible for this credit.
Who can qualify?
The scheme is only relevant to those who are not in receipt of other state housing supports such as HAP (Housing Assistance Payment)
To qualify for the rent tax credit, the tenancy must be signed up with the Residential Tenancies Board (RTB)
How much can I claim?
Maximum credit has increased to €1,000 for an individual and €2,000 for a couple who are jointly assessed for tax
How can I claim?
You can claim the rent tax credit through Revenue.
You can find more information here!
Charity Donation tax relief
Did you know that you can claim tax relief on the money you donate to charity?
For the charitable donation scheme, to be eligible to claim tax relief on donations, the charity must be authorised by Revenue to operate the scheme
If you donate €250 or more per year to a qualifying charity, you can claim tax relief on your donations.
This just means that you pay a reduced amount of tax or none, on the money you give away as a charity donation.
There is a time limit of four years to claim under this scheme
Do you donate to charity? Interested in claiming tax relief on charity donations?
Find out more at here!
Common mistakes that lead to missed deductions.
Not claiming at all
More than half a million people are missing out on tax refunds according to estimates from Revenue.
So, it is important that you avail of any tax reliefs you may be entitled too.
Not availing of everything your entitled tooFailing to claim all entitled tax credits and reliefs in Ireland results in missed opportunities to reduce the amount of tax you pay or increase the amount of refund you receive.
Not going back four years
If you have note done so already, you can claim tax relief as far back as four years.
By not claiming all eligible tax credits and reliefs for the past four years, you may miss out on significant refunds!
The average Irish tax refund is €1,880
How to claim Irish Tax deductions
Looking to claim your tax refund?
The easiest way is to apply with Taxback!
When you register with Taxback, you are guaranteed to receive your maximum tax refund.
We will analyse your tax profile and ensure that you are availing of every tax relief you’re entitled to.
Remember, the average Irish tax refund a Taxback customer receives is €1,880.
Start your refund application today!
Last Updated on March 11, 2025
