The new Rent Tax Credit was introduced on 15 December 2022. This tax credit is intended to reduce income tax for individuals who pay rent by the amount of the credit. This means that if you are eligible for the credit, you can deduct the value of the credit from the income tax you owe.
To claim the Rent Tax Credit, you must have made rent payments during the year 2022. The Rent Tax Credit will be available for four years, from 2022 to 2025.
The Rent Tax Credit is worth 20% of the total rent payments made during the year, up to a maximum credit of €500 for an individual and €1,000 for a couple who file joint tax returns. If the calculated credit is less than the amount needed to reduce your income tax to zero, the maximum credit you can receive is the calculated amount.
If multiple tenants contribute to the rent for a property, each individual or couple can claim the Rent Tax Credit for the rent they have personally paid.
It's important to note that the Rent Tax Credit does not cover payments for a security deposit, repairs or maintenance, or other services like board and laundry. Only rent payments are eligible for the tax credit.
On what type of rental properties can I claim the Rent Tax Credit?
The Rent Tax Credit can be claimed for rent payments made on the following types of properties:
Can I claim a rent tax credit on a property that is partially paid for by a rental support scheme?
Unfortunately no, you cannot claim a tax credit if you receive any of the following: