Number of tenants claiming tax credit down almost 50% in a year

It was suggested to the Dáil that it could be an 'obligatory part of a new tenancy contract' that information on the tax credit is provided to tenants when new rental rules come into effect on March 1

The rent tax credit allows renters to claim 20% of their rent back for the year. This is capped at €1,000 for an individual or €2,000 for a jointly assessed couple. File photo

The number of people claiming the renters’ tax credit is nearly half of what it was a year ago.

The rent tax credit allows renters to claim 20% of their rent back for the year. This is capped at €1,000 for an individual or €2,000 for a jointly assessed couple.

New figures show just 170,410 people have claimed the tax credit for 2025, compared to 316,750 for 2024. This is despite people being able to claim the credit throughout the tax year, as well as claiming the credit back as a lump sum for the previous tax year.

The tax credit was extended for a further three years in Budget 2026 and will now remain in place until the end of 2028.

Figures provided to Fianna Fáil TD for Cathal Crowe by finance minister Simon Harris show those who have claimed the tax credit for 2025 is down dramatically compared to 2024.

In 2024, 316,750 PAYE workers claimed the rent tax credit. This fell to 170,410 claims for the 2025 tax year. Mr Harris also provided Mr Crowe with a county-by-county breakdown for rent tax credit claims.

The highest number of claims for 2024 was in Dublin, with 155,530 PAYE workers applying for the tax credit. However, just 86,490 have claimed for 2025.

What's your view on this issue?

You can tell us here

Some 34,130 rent tax credit claims were made in Cork in respect of 2024, dropping to 17,840 to date for 2025.

In Galway, claims have fallen from 20,000 for the 2024 tax year to 10,420 for 2025. There were 14,200 rent tax credit claims for 2024 in Limerick, falling to 7,330 for 2025.

The lowest number of claims for 2024 was in Leitrim, where just 950 claims were made. Just 480 people have claimed for 2025. Some 29,960 PAYE workers have already started to claim their rent tax for 2026.

Mr Harris told Mr Crowe that “most claims for credits by PAYE taxpayers take place after the year-end” and “it is expected that the bulk of claims for 2025 PAYE taxpayers will be made throughout 2026”.

However, Mr Crowe said he was concerned about the take-up as he questioned whether all renters are availing of it. “When I got the response, I was quite taken aback by what I perceive to be a low uptake on the relief,” Mr Crowe said.

I would imagine in each of the counties listed in the table, there are far more renters than are actually claiming this relief.

He called for a new “national awareness campaign” to be brought in, suggesting it could be an “obligatory part of a new tenancy contract” that information on the tax credit is provided to tenants when new rental rules come into effect on March 1.

Renting survey

Elsewhere, a new survey by housing charity Threshold and Northern Ireland’s Housing Rights charity will today publish a new study on renting across the island.

Some 30% of renters in Ireland reported that they feel either uncertain or very uncertain about remaining in their current accommodation due to high or rising rents, tenancy terminations and poor housing standards, compared to just 17% in the North.

Over the 10 years since July 2015, private rents in Ireland increased by more than 100%, while Northern Ireland saw a 74% rise.

Those on high incomes in Ireland spend the most time renting, with those earning over €80,000 having rented for an average of 12.2 years.