Rent Tax Credit Could Increase by €300 in October Budget

Dublin: There are indications that the government may approve a plan to increase the Rent Tax Credit for tenants by a further €300 in the October budget.

Taoiseach Micheál Martin has stated that the Rent Tax Credit will be increased in the budget, while the government is also examining issues relating to fuel excise duties. Discussions on the measures are currently under way.

The government had previously announced that temporary tax reductions on petrol and diesel would be withdrawn in November. However, Tánaiste Simon Harris has suggested that reversing the reductions may not be appropriate given the continued high cost of fuel.

The Rent Tax Credit was introduced in 2022 and was subsequently extended and increased. Currently, the maximum relief available is €1,000 per person and €2,000 per jointly assessed couple each year. A further €300 increase is now being considered, with Martin supporting the proposal. He has also expressed concern that many eligible people are not taking advantage of the scheme.

Harris has said that tenants need additional support and indicated that he supports increasing the value of the credit. He is also considering whether excise duties on petrol and diesel should be reinstated.

At the same time, Harris has made clear that he does not support a proposal to exempt first-time home buyers from stamp duty.

The proposal was put forward by Fine Gael TD Seamus McGrath. Harris said he did not support the measure and described it as a bad move. He added that this was not simply his personal view, but was also supported by analysis from economists within his department.

Harris has also confirmed that there are currently no proposals in the budget to expand the Help-to-Buy scheme.

335,000 People Benefited in 2024

More than 335,000 taxpayers availed of the Rent Tax Credit in 2024, representing an increase from the previous year.

In 2023, 256,205 renters received the tax relief, while approximately €145 million was spent on the scheme in 2024.

For 2025 and 2026, information is currently available only for taxpayers who pay their tax through the PAYE system.

The Revenue Department has reported that 303,590 taxpayers have applied for the 2025 Rent Tax Credit, with the total value of the claims estimated at approximately €315 million. As of June 15, 2026, 68,260 taxpayers had claimed the credit for 2026.

Information on claims made by self-assessing taxpayers for 2025 and 2026 will only become available at a later stage, with figures expected by mid-2027 and 2028 respectively.

Since the introduction of the scheme, concerns have been raised about the relatively low take-up of the credit among eligible renters. The Department of Finance estimates that approximately 400,000 tenants may be eligible for the relief.

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