Explainer: How to claim €500 rent tax credit as Revenue portal opens to 400,000 eligible taxpayers

The tax credit is available for any person that was in rental accommodation in 2022, allowing them to claim back €500 this month.

For PAYE earners, the rent tax credit is already available to claim, while self-employed people must wait until January 24th to apply

As Budget 2023 schemes come into effect this month, Finance Minister Michael McGrath has confirmed that 1.5m income taxpayers will see an increase in their net income this year, along with 400,000 people now eligible for the newly introduced rent tax credit.

The credit is available to any taxpayer that was in rental accommodation in 2022, allowing them to claim back €500, with jointly assessed married people or civil partners eligible for €1,000.

For PAYE earners, the rent tax credit is already available to claim, while self-employed people must wait until January 24th to apply. 

To claim the rent tax credit, users will need to access their Revenue account. Once signed in, they will be able to review their tax for 2022 where a statement of liability will be made available. 

Within this statement, Revenue will let the taxpayer know if they have overpaid or underpaid for the year before asking them to fill out their 2022 Income Tax Return.

Users will then be asked for personal and income details before being directed to the Tax Credits and Reliefs page. Under the complete list of all tax credits, users will find the option to claim the rent tax credit under the 'You and Your Family' section. 

Once it has been chosen, Revenue will then ask a set of questions relating to the tax credit, including whether or not the property is registered with the Residential Tenancies Board and its subsequent number if it is registered. 

Renters living in a property that is not registered with the RTB cannot avail of the rent tax credit. 

Once all the necessary information is filled out, it will be added to the user's list of existing tax credits for the year.

In addition to the rent credit introduced as part of Budget 2023, a list of new tax changes were also announced which will impact over 1.5m people. 

One of the most significant changes will see the cut off for the 40% tax rate increase from €36,800 for a single person to €40,000. For married couples, the cut off rate will increase to €80,000.

Additionally, the main tax credits including the personal tax credit, employee tax credit and earned income tax credit have increased by €75 each, rising from 1,770 to €1,775. The tax credit for home carers has also risen by an additional €100 to €1,700.

As for the Universal Social Charge, the second rate has increased to €22,920, ensuring that the salary of a full-time worker on minimum wage remains outside the higher rates of USC. The minimum wage has also increased this month to €11.30 per hour.