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Rent Tax Credit 2022

In December 2022, a significant development emerged for individuals contributing to private rented accommodation – the inception of the Rent Tax Credit. This tax credit, established by the Minister for Finance in Budget 2022, is poised to assist renters paying for private rented housing. The applicability of this tax credit extends from the year 2022 through 2025.

For the tax year 2023, eligible renters can leverage this credit by including it in their annual tax return. Moreover, it is noteworthy that the flexibility of claiming this rent tax credit spans beyond the immediate year, allowing individuals to apply for the credit during the year for other relevant tax years. This update aims to provide you with the essential details, empowering you to navigate the process seamlessly.


How much is the Rent Tax Credit?

This credit equates to 20% of the total rent payments made in a given year, with a maximum credit set at €500 per individual. For couples jointly assessed for tax, the ceiling extends to €1,000.

Notably, in the latest budget adjustments unveiled in 2024, this tax credit has been enhanced. For the tax years 2024 and 2025, the credit has been raised to €750 for individuals and €1,500 for couples jointly assessed for tax, offering additional relief to eligible taxpayers.


When Can I Apply for the Rent Tax Credit?

Applications for the 2023 tax year have been open since January 2024. You can apply for the tax credit on your income tax return. Keep reading for a step-by-step guide.

Tip: Ensure your financial security by considering renters insurance alongside claiming the Rent Tax Credit for 2023.


Rent Tax Credit Eligibility Criteria:

To qualify for this tax credit, you must meet specific criteria related to your accommodation. As of Budget 2024, the eligibility criteria have been refined and expanded to better accommodate taxpayers. Here are the updated details:

You may be eligible for the tax credit if you pay rent for:

  • Your primary residence,
  • Another property used for an approved course or work,
  • A property used by your child for their attendance in an approved course. Note: Your child must be under the age of 23 at the commencement of their first year in the course.

Conditions for eligibility encompass:

  • The location and purpose of the rental property,
  • The tenancy type,
  • The relationship between you, or your child, and the landlord,
  • The age of your child and the nature of the course they are attending.

In addition, the renter’s tax refund does not apply to payments for:

  • Security deposits,
  • Repairs or maintenance,
  • Board, laundry, or other services.

Furthermore, your landlord must not be:

  • A housing association or approved housing body,
  • A local authority,
  • Your parent,
  • Your child.
  • For a property used by your child to attend a course, the landlord cannot be related to you or your child.

You cannot claim the credit if you are getting housing support including:

  • The Housing Assistance Payment,
  • Rent Supplement,
  • The Rental Accommodation Scheme,
  • Cost rental housing.

Updated Eligibility Criteria:

To qualify for the Rent Tax Credit, your tenancy must be officially registered with the Residential Tenancies Board (RTB), unless you have a license agreement in place. For example, if you are renting a room within a home shared with the owner under a license agreement, there is no requirement for RTB registration.

In a noteworthy adjustment announced in Budget 2024, the credit now extends to expenses covered by parents for accommodations like digs or rent-a-room arrangements, specifically for their children attending an approved course. This significant change applies for the tax years 2022 and 2023.

Please read the Rent Tax Credit guidance for further information on the necessary conditions to be eligible.


How is the rent tax credit calculated?

Example: Calculation 


On June 1, 2023, Elizabeth moved into a rental and began making monthly rent payments of €700. When Elizabeth initially moved in, she also paid a €700 security deposit in addition to her rent.

Elizabeth made payments totalling €4,900 (€700 * 7) for the tax credit during the 2023 tax year. Please note, that the security deposit is not considered within the calculations for the tax credit.

As Elizabeth made qualifying payments over €2,500, so, she is eligible for the maximum relief of €500 in 2023.


How to claim the Rent Tax Credit for 2023?

To receive this credit, you must submit a claim.

How to claim if you are a PAYE taxpayer

You can claim the renter’s tax refund for 2023 by completing your Income Tax Return in myAccount.

Simply follow the steps below:

  • Sign in to myAccount
  • Click on ‘Review your Tax 2020-2023’
  • Select the relevant tax year (2023)
  • Request a ‘Statement of Liability’
  • Click on ‘Complete your Income Tax Return’
  • In the ‘Tax Credits & Reliefs’ page select ‘You and your family’ and click on ‘Rent Tax Credit’
  • Complete the claim process
  • Submit the Income Tax Return

How to claim if you are self-assessed

You will be able to claim the credit for 2023 by completing your annual Income Tax Return (Form 11) in Revenue Online Service (ROS).

Follow the steps below to claim the credit:

  • Sign into ROS
  • Open ‘My Services’
  • Click ‘File Return’
  • Select ‘Income Tax’
  • Select the tax year for which you wish to file a return (2023)
  • Identify the ‘Rent Tax Credit’ section of the tax return and enter the necessary information.

At Cronin & Co Accountancy Firm, we specialise in taxation services. For more information about how you can apply for the tax credit, please contact with a member of our tax team.