THE RENT TAX Credit is back for Budget 2025 — and it’s worth more than ever.
The Government announced today that the credit will increase to €1,000 per person next year, and that the new amount has been back-dated so that people can also claim an additional €250 for this year.
Here’s everything you need to know about it, from knowing whether you’re eligible for it to how to claim it.
The credit is worth up to €1,000 per calendar year for both 2024 and 2025.
Before today’s announcement, the credit was worth €750 for 2024, so people who’ve already claimed it for this year can now get an extra €250.
It was initially worth €500 when it was introduced in 2022, so if you haven’t ever claimed it but have been renting since the start of last year, you could be in line for a credit worth more than €1,500 — with an additional €1,000 to come next year.
The amount of the credit is only worth 20% of a person’s rent payments in the year – so if a person’s annual rent is less than €5,000, they won’t be eligible for the full €1,000.
The claim counts per individual person, so married couples and civil partners will be able to claim together for double the amount.
As with other tax credits, the Rent Tax Credit is set against your other liabilities and credits, so you might not necessarily get a cheque in the post for the amount you’re owed.
No. This is an individual tax credit, so it’s only relevant to you and the amount of tax you pay.
The exception is married couples and civil partners, who will be able to claim together for double the amount.
The credit started in 2022, and can be claimed for that year, 2023 and 2024. You’ll be able to claim the credit for 2025 from early next year.
If you’ve already claimed it for 2022 or 2023, you can’t claim it again; if you’ve already claimed for 2024, you can only claim the additional €250 announced today.
In theory, yes — but in practice it’s a different story.
Revenue says that renters must take “all reasonable steps” to be registered with the Residential Tenancies Board (RTB).
But although landlords are required by law to register their tenancy, this isn’t always done.
The RTB number is usually provided by the landlord who registers the tenancy, but Revenue acknowledges that cases may arise where tenants are unable to provide the number when they claim the credit.
In such cases, Revenue say that a renter will not be prevented from claiming the credit, but notes that they may be asked to provide the number and other records related to their rental arrangement at a later date.
More information is available here.
For parents of students, Revenue previously told The Journal that the claimant’s child must have been under 23 at the start of the tax year in which the first started on a college course in order for the Rent Tax Credit to apply.
“Students who pay their own rent in ‘digs’ are already eligible to claim the Rent Tax Credit, no change has been made in respect of this,” a spokesperson added.
No. The credits are not available to ‘supported tenants’, such as those who avail of the Housing Assistance Payment (HAP), the Rental Accommodation Scheme, or a Rent Supplement Payment.
People living in Cost Rental dwellings are also not entitled to it.
The credit will be applied for in the same way people apply for other tax credits, i.e. through Revenue.
PAYE workers looking to claim for 2022 to 2024 can do so by completing their Income Tax Return in the myAccount section of their Revenue profile.
If you’re self-employed, you can claim for those years by completing your annual Income Tax Return (Form 11) on the Revenue Online Service (ROS) portal.
For 2025, people will be able to claim in the same way as for previous years after 1 January.
More information, including a step-by-step guide, is available here.
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