How to claim rent tax credit as value rises to €750 as part of Budget 2024

Introduced last year, the rent tax credit has recorded a significantly low uptake, with more than a quarter of renters yet to submit a claim

10/10/2023. Minister for Finance Michael McGrath TD & Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD during Budget 2024 at Government Buildings, Dublin.

Introduced last year to help tenants cope with rising accommodation prices, the rent tax credit has been continued and increased from €500 per year to €750 for 2024. 

Speaking as part of this year's budget, Finance Minister Michael McGrath announced that in addition to the €250 increase in value, a new amendment has also been made allowing parents who pay for their children living in Rent a Room or digs accommodation to claim the rent tax credit.

This will also be backdated to allow for claims to be made for the 2022 and 2023 tax years.

Low uptake

Despite putting hundreds of euro back in renters' pockets, the rent tax credit has had a notably low uptake since its inception, with Mr McGrath announcing that only 290,000 of the 400,000 people eligible have submitted claims so far. 

First flagged shortly after its launch, the low uptake has been largely attributed to failure on behalf of landlords to register their tenancies with the Residential Tenancies Board (RTB), with renters' who's landlords are not registered deemed ineligible for the credit. 

However, there have been instances of renters who's properties are not registered with the RTB still receiving the tax credit.

While the new €750 value cannot be claimed until early next year, more than 27% of people have yet to claim this year's credit of €500.

To claim the rent tax credit, users will need to access their Revenue account. Once signed in, they will be able to manage their tax for 2023.

Here, users can see the tax credits that are already on record, as well as add any new ones not previously claimed. 

If not already applied, users can click 'add new credits,' and 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.

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