What is the new rent tax credit scheme in Ireland?

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 new scheme is available for the tax period of the years 2022 – 2025. The tax credit scheme is not a grant or a subsidy payment, and it’s designed to reduce the income tax tenants of private rentals are due to pay.

Another important note is that you can now claim your rent tax credit on your 2022 tax year-on-year return. How long will this tax credit be available?

How does the new rent tax credit scheme work?

The new tax credit scheme was introduced at the end of the fourth quarter of 2022. The new scheme entitles renters to reduce their income tax, essentially reducing their rent by 500 for individuals and €1000 for couples making a joint application.

You no longer need to apply for the scheme. Instead, you claim back the tax break 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 will be available from 2022 to 2025. When might the Rent Tax Credit be available?

What are the eligibility criteria for Rent Tax Credit? 

To be eligible for the scheme, renters must pay rent on a private residential property in Ireland, and their annual rent must be at least €2,000 but no more than €20,000.

Renters must also meet specific income requirements to be eligible for the scheme. The income thresholds for the 2021 tax year are €40,000 for a single person and €80,000 for a couple or a single person with one or more dependent children.

To claim the tax credit, renters must include it on their annual tax returns, and the credit will then be applied against their income tax liability.

The Rent Tax Credit Scheme is designed to provide targeted support to those most need it. Renters already receiving other housing supports, such as the Housing Assistance Payment or the Rental Accommodation Scheme, are not eligible for the scheme.

Overall, the Rent Tax Credit Scheme is a positive development for renters in Ireland, providing much-needed financial relief to those struggling to pay their rent.k

Who has been excluded front the tax credit scheme?

The tax break does not apply to any payments related to the following:

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

Details required to claim:

You must provide evidence of your rental payments during the year to claim the Rent Tax Credit. 

This may include rental agreements, rent receipts, or bank statements that show rent payments. You will also need to provide proof of your identity, such as a passport or driving license, and your residency status.

How to claim rent tax credit

From 2022, you can now claim your renter’s tax credit via your income tax return. If you’re paid via PAYE, then you can claim through “myAccount” alternatively, you can claim via the do this through Revenue Online Services (ROS)

Does the tenancy have to be registered with the Residential Tenancies Board (RTB)?

All tenancies are to be registered with the RTB regardless of whether they are entitled to the rent credit if I am.

For more information on how to register with the RTB by clicking here.

Can I claim the Rent Tax Credit if I receive HAP?

No, if you are in receipt of Housing assisted payments, then, unfortunately, you’re not entitled to the rental tax credit.

Do you get a tax credit for renting an apartment?

The tax credit scheme eligibility is not determined by the property type but by the eligibility criteria. You can find the eligibility criteria by viewing the “What are the eligibility criteria for Rent Tax Credit? “ section of this article.

What other tax credits am I entitled to in Ireland?

All tax credits have their own criteria, but the main credits available via application are 

  • 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
  • Widowed Parent Tax Credit

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