Rent Tax Credit: Revenue updates guidelines
What is the Rent Tax Credit?
A new Rent Tax Credit was introduced on 15 December 2022. If you pay income tax, the tax credit reduces your tax by the amount of the credit.
You can claim the tax credit for rent payments you made in 2022 by making an income tax return for 2022. You can also claim the tax now for payments made in 2023 if you are a PAYE taxpayer.
The Rent Tax Credit will be available for the years 2022 to 2025.
How much is the Rent Tax Credit?
The amount of the credit is 20% of your rent payments in the year, up to a maximum credit of:
- €500 for an individual
- €1,000 for a couple who are jointly assessed for tax
If a smaller amount would reduce your income tax to zero, that amount is the maximum credit you can get.
If a number of tenants pay the rent for a property, each individual or couple can claim the Rent Tax Credit for the rent they pay.
You cannot claim for payments for:
- A security deposit
- Repairs or maintenance
- Board, laundry, utilities or other services
Can I claim the Rent Tax Credit?
You can claim the credit for rent payments you have made for:
- Your home
- A second home in Ireland that you use to take part in your work or an approved course
- A property that is used by your child to take part in an approved course, if they are under 23 at the start of the year in which they begin the course
The rent payments must be for a home that is in Ireland.
You cannot claim for rent payments on a property that you get housing support for, including:
This is the case even if you make a top-up payment in addition to the housing support you get.
Registration of your tenancy
Your tenancy must be registered with the Residential Tenancy Board (RTB), unless it is a type of tenancy where this is not required, called a licence arrangement. This includes where you are sharing with the owner in a rent-a-room or digs arrangement.
In some cases, only the types of tenancies that must be registered with the RTB are eligible for the credit. This applies if:
- You are related to your landlord or
- You are claiming for a property that is used by your child
You can check the register with the RTB.
If your tenancy is registered, the RTB has information on how to find the Registered Tenancy (RT) number. You will be asked for the RT number when you apply for the tax credit. If you cannot provide the RT number when you apply, Revenue may ask you for it later.
Find out more about registration of tenancies.
Your landlord
Your landlord must not be:
- A housing association or approved housing body
- A local authority
- Your parent
- Your child
If the property is used by your child to attend a course, the landlord cannot be any relation to you or your child.
When you apply, you will be asked to provide information about your landlord including:
- Their name and address
- Their PPS number or Tax Reference number
- The property’s Local Property Tax number
If your landlord prefers, they can give this information to Revenue directly through myEnquiries. They should also give the Registered Tenancy number.
How to claim the Rent Tax Credit
If you are a PAYE taxpayer, you can claim the tax credit for rent paid in 2022 in myAccount:
- Sign in to myAccount
- Go to the ‘PAYE Services’ section
- Click ‘Review your Tax 2019–2022’ and select 2022
- Click ‘Request’ under the ‘Statement of Liability’ section
- Click on ‘Complete Your Income Tax Return’
- In the ‘Tax Credits & Reliefs’ page, select ‘You and your family’ and click on ‘Rent Tax Credit’
- Enter the information requested
Revenue has a quick guide to making a tax return (pdf) and a detailed guide to making a tax return (pdf).
You can also claim now for rent paid in 2023 if you are a PAYE taxpayer:
- Sign in to myAccount
- Go to the ‘PAYE Services’ section
- Click ‘Manage Your Tax 2023’
- Click ‘Add new credits’
- Under the ‘You and Your family’ section, claim the Rent Tax Credit
If you are self-assessed
If you are registered for income tax self-assessment, you will soon be able to claim the tax credit for rent paid in 2022 by using the Revenue Online Service (ROS):
- Sign into ROS
- Open the ‘My Services’ screen
- Click on ‘File Return’
- Select ‘Income Tax’ from the dropdown menu
- Select the 2022 tax year
- Go to the ‘Rent Tax Credit’ section of the tax return and enter the information requested
There is a Revenue guide to filing your tax return on ROS.
Revenue clarifies guidelines to assist Claimants
Revenue has published a detailed guide to the Rent Tax Credit (pdf).
The Rent Tax Credit is broadly available in the following three circumstances:
1) where the claimant makes a qualifying payment in respect of his or her principal private residence,
2) where the claimant makes a qualifying payment in respect of a ‘second home’ which he or she uses to facilitate his or her attendance at, or participation in, his or her employment, office holding, trade, profession or an approved course, and
3) where the claimant makes a qualifying payment in respect of a property used by his or her child to facilitate the latter’s attendance at, or participation in, an approved course
Review the full guide here and remember, McMahon and Co. is here to assist you in your application or any other taxation matters. Contact us with any questions you might have.
Source: Rent Tax Creszensinformation.ie) and Part 15-01-11A – Rent Tax Credit (revenue.ie) (updated June 2023)
