Just over half of eligible renters claim €500 rent tax credit

The rental credit was introduced in December 2022 to help tenants with the increased cost of rent. The tax credit is available for 2022 to 2025 and can be claimed by filing an income tax return.  

Just over half of eligible renters have claimed their €500 rent tax credit since it was announced as part of Budget 2023.

According to the latest Revenue figures, 209,000 people have claimed the tax credit of the estimated 400,000 people who are eligible.

The rental credit was introduced in December 2022 to help tenants with the increased cost of rent. The tax credit is available for 2022 to 2025 inclusive and can be claimed by filing an income tax return.  

In the final quarter of 2022, rents hit €1,733 per month, up 13.7% on the same period in 2021.

Latest figures from Revenue show 186,180 people made a rent tax credit claim for 2022, while just 16,342 people made claims for both 2022 and 2023.

Some 7,221 taxpayers have made claims for 2023 alone, with some tenants unaware that this year's credit was readily available.

The rent credit is available to tenants as well as parents paying rent on behalf of a child who is living away from home while attending college.

Single people can claim up to €500 per year while married couples and civil partners can claim up to €1,000.

To claim the full rent credit, a single person must spend at least €2,500 a year on their rent and couples must spend at least €5,000.

Renters have four years to claim the credit based on the four-year lookback rule but are encouraged to apply for the relief imminently.

Meanwhile, in a survey of more than 1,000 people eligible for the rent credit, 16% said they were lacking supports to back up their claim, due to a lack of valid receipts from their landlord, with 21% saying they had not had a chance to get around to claiming their tax credit.

The Taxback Taxpayer Sentiment survey also found that, for one in 10 people, the fact that their landlord is not registered with the Residential Tenancies Board (RTB) is preventing them from making a claim.

How do I apply for my rent tax credit?

To apply for the rent tax credit, users will need to log in to their online Revenue account and review their tax for 2022.

Here, a statement of liability will be available. Revenue will inform the taxpayer whether they have overpaid or underpaid for the year before asking them to fill out their income tax return for 2022.

The user will need to provide personal information and details of their income.

Then, the Tax Credits and Reliefs page will appear and, under the list of all tax credits, the user will click into the You and Your Family section.

This is where the user can claim the rent tax credit. They will be asked questions including whether or not the property is registered with the RTB and will be prompted to include the RT number.

When the application has been completed, the rent tax credit will be added to the list of existing credits for the year.