Q. I am renting privately and have heard there is a tax credit I could be claiming. What is it, how much it is worth, and how do I claim it?
THE Rent Tax Credit was introduced in 2022 and has been extended to be available up to 2028. The Rent Tax Credit reduces the amount of income tax you are due to pay in a tax year. To benefit from the credit, you must have an income tax liability to offset against it.
How much is the tax credit worth?
The amount of credit you can claim will be calculated when you submit your claim. This amount will depend on the amount of rent you pay and what income tax you pay. The amount of the credit is 20 per cent of your rent payments in a year. From 2024 to 2028, the maximum value of the Rent Tax Credit is €2,000 per year for jointly assessed married couples or civil partners. The maximum value is €1,000 in all other cases, including single persons. This is the case no matter how many properties you pay rent for during the year.
Am I eligible?
You can claim the credit for rent payments you have made for your home or a second home that you use for work. Or a property that you use to take part in an approved course or for a property that is used by your child to take part in an approved course, if they are under 23 at the start of their first year.
However, you are not eligible if your landlord is a housing association or approved housing body, your parent or your child. If your child is using a property to attend a course, their landlord cannot be any relation to you or your child.
Furthermore, you cannot claim the credit if you are getting housing support including: HAP ( Housing Assistance Payment) Rent Supplement, RAS (Rental Accommodation Scheme), or cost rental housing.
What does the tax credit not cover?
The tax credit does not apply to payments for: a security deposit or board, repairs or maintenance, laundry or other services.
My tenancy isn’t registered with the Residential Tenancy Board. Can I still claim the credit?
Your tenancy must be registered with the Residential Tenancy Board, unless it is one of the tenancy types where this is not required – for example, if you are sharing with your landlord under the rent a room scheme.
How do I claim the credit?
You must claim the tax credit for rent paid through your Revenue myAccount.