A new rent tax credit was introduced in Budget 2023. This new tax credit is available for the tax years 2022 to 2025 inclusive – so take note, a back claim can be made for the year 2022!  Key details pertaining to the new credit and how to claim as a PAYE employee are outlined below.

How much is the Rent Tax Credit?

  • Maximum credit of €1,000 per year in the case of a jointly assessed married couple or civil partners, or
  • Maximum €500 in all other cases

When might the Rent Tax Credit be available?

  • When might the Rent Tax Credit be available?

    Where the claimant pays rent in respect of his or her principal private residence (PPR)

  • When might the Rent Tax Credit be available?

    Where the claimant makes a rental payment in respect of a property used by his or her child to facilitate an approved course

  • When might the Rent Tax Credit be available?

    Where the claimant makes rental payments in respect of a ‘second home’  e.g. another property used for attendance at work or an approved course

The Rent Tax Credit is not available:

  • The Rent Tax Credit is not available:

    To those receiving State housing support

  • The Rent Tax Credit is not available:

    Where the claimant and landlord are parent/child

  • The Rent Tax Credit is not available:

    Where the landlord is a Housing Association or Approved Housing Body

Details required to claim:

  1. Confirmation as to whom uses the property – if a child, their PPSN, date of birth and approved course will be required
  2. Purpose for which the property is being used i.e. PPR, second home or for a child, along with the address, Eircode and LPT unique reference number
  3. Type of tenancy i.e. ‘rent-a-room’ or RTB registered tenancy including start and end date of tenancy with the unique RTB registration number
  4. Nature of family relationship between claimant/tenant and landlord (if any)
  5. Landlord or agent details (name, address, residence status and tax reference number)
  6. Name of the person to whom rent payments were made and the gross rental payments made over the course of the year

Conditions to note:

  • A formal claim must be made to receive the credit i.e. for 2022 a claimant must complete their Income Tax Return.
  • Payments must be made under a tenancy
  • The property must be residential and located in Ireland
  • See www.revenue.ie for a useful checklist of conditions

Landlords may be required to provide a statement of rental payments along with a copy of the rental agreement to assist tenants with making a claim.  The property’s LPT number, the landlord’s correspondence address (including Eircode) and their tax reference number may be provided to the tenant when the tenancy commences or direct to Revenue.

How to claim the Rent Tax Credit for 2022:

  • How to claim the Rent Tax Credit for 2022:

    Sign into MyAccount via www.revenue.ie

  • How to claim the Rent Tax Credit for 2022:

    Click ‘Review your tax 2019-2022’

  • How to claim the Rent Tax Credit for 2022:

    Select 2022 and click ‘request’ under the Statement of Liability

  • How to claim the Rent Tax Credit for 2022:

    Select ‘Complete your Income Tax Return’

  • How to claim the Rent Tax Credit for 2022:

    In ‘Tax Credits & Reliefs’, select ‘You and your family’ and click ‘Rent Tax Credit’ and enter the relevant information

  • How to claim the Rent Tax Credit for 2022:

    When all other elements of your 2022 tax return are entered – proceed to complete and submit

Claiming for 2023 and beyond:

  • Real-time in-year claims will be facilitated by using Revenue’s Real-Time Credit facility through MyAccount – however this service is not available currently
  • Alternatively, a post year end claim can be made by completing your income tax return via MyAccount

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Jillian O'Sullivan
Jillian O'Sullivan
Partner - Corporate Compliance
Dublin
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