The €500 rent tax credit: Who can apply, and how to claim it

For PAYE earners, the rent tax credit is already available to claim.

What is the rent tax credit?

The rent tax credit is a €500 tax credit available to renters, with the Government introducing it as part of Budget 2023. The credit itself is able to be claimed retrospectively for 2022, and is also claimable for 2023. 

The scheme is due to run until 2025, with the future beyond that set to be decided by a future Government.

Who is eligible?

Only renters who are not availing of other rental support are eligible to claim the tax relief. This means that any tenant who avails of the Housing Assistance Payment (HAP) or Rental Accommodation Scheme (RAS) are ineligible. It is estimated that there are 400,000 renters who are currently eligible for the relief, with more than 200,000 having claimed it since it was officially implemented on January 1, 2023.

Additionally, the relief may be claimed by parents whose children are attending an approved third-level course. This only applies for parents who pay for the rent of their children while attending third-level education. However, the rental property must be used specifically for their education.

The credit may still be claimed if the child returns home either at the weekend or during time outside of third-level semesters.

However, it may not be claimed if the property’s landlord is related to the parent or the child, or if the child is over the age of 23 at the start of the tax year when they start their course.

How can I claim it?

The tax credit itself is claimed via Revenue. For PAYE taxpayers, this can be done through Revenue’s MyAccount portal. This will add the tax credit to a claimant's list of tax credits for the year. Otherwise, claimants are able to access the credit through Revenue Online Services (ROS).

Currently, only PAYE workers are able to claim the credit for 2022 and 2023, with people who file an end-of-year tax return required to wait until later this year.

Is it claimed per household or per person?

The credit itself is claimed per person, with individuals able to claim up to €500 each. For example, if there are four people living in a single house-share and all are PAYE taxpayers, all four will be entitled to claim the €500 credit for 2022 and 2023.

For jointly-assessed married couples or civil partners, the claim will still be valid, but will have a maximum value of €1,000.

Does the property need to be RTB registered?

Yes, as part of Budget 2023, Finance Minister Michael McGrath said that all seeking to access the tax credit would require their rental accommodation to be registered with the Residential Tenancies Board (RTB).

This means that their landlord would have been required to register the property with the RTB when the tenancy began.

While applicants can access the credit without a Registered Tenancy (RT) number, Revenue may seek additional documentation to prove that a claimant has a right to the tax relief. This documentation may include the RT number, and Revenue can withdraw the tax relief if it is not supplied.

Can HAP/RAS tenants apply?

No, under the current rules, only people who are not already in receipt of State housing support are entitled to claim the tax relief. This means that people who access either the Housing Assistance Payment (HAP) scheme or the Rental Accommodation Scheme (RAS) are unable to apply for the rent tax credit.