Rent Tax Credit in Ireland; Everything You Need to Know

Rent Tax Credit in Ireland; Everything You Need to Know

24 April
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The Irish government has introduced a new Rent Tax Credit for 2022-2025, providing financial relief for those who rent private accommodation. This means that if you rented a property in 2022 or are currently renting in 2023, you may be eligible to claim this tax credit.

In this blog post, we will cover the essential details about the new Rent Tax Credit, including who can claim it and how to do so as a PAYE employee.

So, if you are a renter in Ireland, keep reading to find out how you can benefit from this tax relief.

What exactly is Rent Tax Credit?

The Rent Tax Credit introduced in Ireland will provide financial relief to eligible individuals. The credit is structured differently for singles and couples.

For single taxpayers, it is a tax rebate worth up to €500 for the year 2022 and a tax credit of €500 for 2023
For couples who are jointly assessed, the credit is worth up to €1,000 for 2022, and they can receive a tax credit of €1,000 against their 2023 PAYE income

The Rent Tax Credit in Ireland is not limited to renters who occupy the rental property themselves.

Parents who pay rent on behalf of their children who are attending university can also claim the credit, up to a value of €500 per parent, amounting to a total tax credit of €1,000 annually
Additionally, individuals who rent private accommodation to facilitate their work may also be eligible for this tax credit

However, it is worth noting that in the case of rent paid on behalf of a qualifying child, neither the child nor the individual can be a relative of the landlord.

Who is eligible for Rent Tax Credit?

To be eligible for the Rent Tax Credit in Ireland, the property being rented must be registered with the Residential Tenancies Board (RTB), with some exceptions for arrangements such as ‘rent-a-room’ or ‘digs’. Parents who pay rent on behalf of their college-going children can also claim the credit, and it is recommended that they do so as students may not have paid enough tax to claim the full €500 credit. If the parent works full-time, they can claim the maximum amount against their tax credits.

It is important to note that the Rent Tax Credit in Ireland only applies to individuals who pay for private rented accommodation and not those who receive social housing support.

If you are eligible to claim this credit, you may be required to provide certain details to prove that you were renting in 2022. These details may include the address of the property, the total amount of rent paid, the date you started renting, and the name of the landlord or letting agent.

How to claim Rent Tax Credit?

To claim the rent tax credit, you must complete Form RCT1 and submit it to Revenue before the end of the tax year (December 31). You will need to provide details of your landlord and the rent that you have paid during the tax year.

If you are unsure of the amount of rent that you have paid, you can ask your landlord for a statement of rent paid. Your landlord is legally obliged to provide you with this information. You should also keep a record of any rent receipts that you have received throughout the year.

So, if you have any doubts or clarifications required on your eligibility for the rent tax credit or if you require any assistance on filing the same, contact our tax refund specialists in Dublin 15.