Rent Tax Credit to Increase to €1,000 in Next Year
Dublin: Following the latest budget announcement, the Irish government has confirmed an increase in the rent tax credit, raising it to €1,000 for next year. This represents a €250 boost from the current amount and includes a one-year retroactive effect, allowing tenants to claim the full €1,000 credit for 2024. The rent tax credit was first introduced in the 2023 budget as a measure to assist tenants who do not receive other forms of housing support.
Budget Details and Eligibility
The increase was introduced by the government to ease the financial burden on renters, with Finance Minister Paschal Donohoe, who initially launched the credit, reiterating its importance in helping those without access to other housing assistance. For those who have already claimed the €750 credit this year, the budget outlines an additional top-up of €250 to bring their total claim to €1,000.
However, tenants living in cost-rental arrangements or receiving Housing Assistance Payment (HAP), Rental Accommodation Scheme (RAS), or Rent Supplement are ineligible for the rent tax credit. While housing charity Threshold welcomed the rent tax credit scheme, they emphasised the need for long-term solutions to Ireland’s housing crisis, particularly increasing the availability of affordable housing.
How to Claim the Rent Tax Credit
Eligible tenants can claim the rent tax credit directly through the Revenue website. To qualify, landlords must be registered with the Residential Tenancies Board (RTB), as the tax credit is processed using the RTB registration number. In cases where an RTB number is not available, tenants can submit other rental agreement documents to support their claim. The credit can be claimed retroactively for up to four years.
Individual and Joint Claims
The rent tax credit can also be claimed on an individual basis. Those living with housemates or partners are each entitled to claim the full amount, while married couples or civil partners can claim a joint credit of up to €2,000. College students under the age of 23 are also eligible to claim the credit, as long as they meet the necessary requirements. A Revenue spokesperson confirmed that no changes have been made to existing laws in this regard.
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