Rent Tax Credit

Background

  • The rent tax credit is valued at up to €500 per person, or €1,000 in the case of a jointly assessed couple, and will be available for the 2022 to 2025 years of assessment inclusive. Claimants can claim the Rent Tax Credit for 2022 year of assessment from January 2023.
  • It is estimated that some 400,000 persons will be able to benefit from the credit. The Exchequer cost of the measure is estimated at some €200m for each year that the relief applies.
  • As at 9th January 2022, just over 19,800 claims for the rent tax credit have been made through myAccount. Self-assessed taxpayers will be able to submit their 2022 Income Tax Return through ROS, and include a claim for the rent tax credit on same, from 24th January.
  • Comprehensive guidance, including who may claim the credit and in what circumstances, applicable conditions and how to claim etc., is available on the Revenue website, www.Revenue.ie.

Claims in respect of 2022

  • Eligible taxpayers that they will be able to claim the rent tax credit in respect of rent paid in 2022 during January 2023.  For PAYE earners, this will be from 1 January while self-employed persons will be able to claim from 24 January. 

Claims in respect of 2023

  • From mid-February, claimants with income which is subject to PAYE will have the option to make a real-time claim through myAccount in respect of qualifying payments made during the 2023 tax year.
  • Claimants who are not in receipt of income which is subject to PAYE will be able to claim the rent tax credit for 2023 at the end of the tax year by completing an Income Tax Return in the usual way. This option also remains open to claimants in receipt of PAYE income.

 Additional Information

  • This measure applies in respect of any agreement, contract or lease which has been registered with the Residential Tenancies Board (RTB). This includes most private rental arrangements where the tenant(s) has exclusive access to the entire property.
  • This measure also applies to licences for the use of a room or rooms in an individual’s principal private residence, where there is no requirement for the tenancy to be registered with the RTB. This typically includes rental arrangements commonly known as ‘digs’ or which would be within the scope of the rent a room scheme.
  • Parents of third level students may claim the credit on behalf of their children subject to certain restrictions.  The Revenue guidance provides further details.
  • The tax credit is aimed at those not in receipt of other State funded housing support. As such, local authority tenants, persons in receipt of HAP, RAS, those renting from AHBs, those in receipt of Rent Supplement will not be eligible.