Irish Rent Tax Credit

What is the new Irish rent tax credit?

The new scheme aims to provide a new 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.

How much is the Irish rent tax credit?

For the years 2022 and 2023 the rent tax credit is worth €500 per year for a single individual and €1,000 for a married couple.

Whereas, for the years 2024 and 2025 the amount has increased to €1,000 for a single individual and €2,000 for a married couple.

Currently, anyone who meets the criteria (more on that below) and is renting in Ireland at the moment can avail of it.

Is the new rent tax credit backdated?

The good news is that yes, the rent tax credit is backdated!

While it comes into place from the 2023 tax year up to 2025, it has been backdated for rent paid in 2022 also.

That means that if you rented property in 2022 it's a good idea to check if you can claim the credit.

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.

As mentioned above, the maximum credit for a single individual is €500 and €1,000 for a married couple for the years 2022 and 2023. For 2024 and 2025, there has been an increase to €1,000 for a single individual and €2,000 for a married couple.

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.

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.

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 the rent that you paid.

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, a letter from other tenants, utility bills etc.

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 asks 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.

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.

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.