How to apply for the new Irish Rent Tax Credit
In the recent Irish Budget for 2025, Finance Minister Paschal Donohue announced an update for the Rent Tax Credit for renters in Ireland.
The Rent Tax Credit was originally introduced in Budget 2023. This is a relief available to renters to help combat a steep rise in the cost of living in the country over the past number of years.
And the good news is, the credit has since been increased!
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.
Since then, the Rent Tax Credit has been increased in each budget announcement.
So, let's see what increases were made to the credit in Budget 2025!
What changes were made to the Rent Tax Credit in Budget 2025?
In Budget 2025, the Rent Tax Credit was increased to €1,000 for a single individual. Meanwhile, married couples can claim €2,000.
The good news is, not only do these new rates apply for 2025, but they've been backdated to cover the 2024 tax year also! This means if you're eligible, you can claim the higher rate for both years.
Prior to this, the Rent Tax Credit for 2024 was worth €750 for a single individual and €1,500 for a married couple. However, in the Budget 2025 announcement the government increased the limits for the 2024 tax year retrospectively.
As well as updates to the Rent Tax Credit, the Help-To-Buy scheme has been extended until the end of 2029, as announced in Budget 2025.
Here's what else was included in the Budget 2025 announcement!
What is the Irish Rent Tax Credit?
The scheme aims to provide a 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 tenant, 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 living in 'digs' accommodation.
The average Irish tax refund is €1,880
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?
For 2024 and 2025 the rent tax credit is worth €1,000 for a single individual and €2,000 for a married couple. (The 2024 limits were €750 and €1,500, but these were increased for the year retrospectively in Budget 2025).
For 2022 and 2023, the rent tax credit was €500 per yearfor a single individual and €1,000 for a married couple.
All of this money is still on the table as you can claim your refund from the previous four tax years.
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 400,000 people are eligible to apply for it.
Better yet - there are other tax reliefs that can help you boost this amount by even more!
Can I claim the Rent Tax Credit if my landlord is not RTB registered? What should I do if I don't know my landlord's RTB number?
In order to claim this credit, your tenancy must be signed up with the Residential Tenancies Board (RTB), except if you have a licence arrangement.
An example of this would be if you are renting a room in a home that you are sharing with the owner, you'll have a licence agreement which won't have to be registered with the RTB.
Is there a requirement to upload any receipts in relation to the Rent Tax Credit?
When you apply for the Irish Rent Tax Credit, you will not need to upload receipts as evidence of your rental agreement.
However, as with all other tax credit claims, if Revenue ask you to provide evidence, you will need to do so.
So, it is important that you hold on to any receipts you have as evidence.
Can you claim the Rent Tax Credit if the contract is not in your name?
Yes, it is possible to do this - you claim the credit for the part of rent that you paid for.
Again, Revenue may request that you provide supporting documentation at a later point in time - like a copy of any bank statements that show the money was transferred to the landlord.
You can also use a letter from the landlord confirming that you actually live there, letter from other tenants, utility bills etc.
Is it possible to claim the Rent Tax Credit without my landlord's PPS?
Yes.
Knowing your landlord's PPS is not necessary for claiming the Rent Tax Credit.
Therefore, you can claim the credit without knowing the PPS number.
Is the Rent Tax Credit backdated?
The good news is that yes, the rent tax credit is backdated!
It has been backdated for rent paid in 2022.
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
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 by 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 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 €1,000 and €2,000 for a married couple.
How can Taxback help me?
At Taxback, we take all of the stress out of Irish taxes.
Find out how to claim tax back, especially if it's your first time.
Of course, you can always file for a tax rebate 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
- Managing tax withholdings on monthly rental income - landlord rent collection service
You can start by checking how much you could be owed here!
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