Tax Tips

Rent Tax Credit, what is it?

Rent Tax Credit, what is it? 

A Rent Tax Credit has been introduced for the year 2022 forward.  Tax relief can be claimed if you paid for private rented accommodation in 2022.  

This has been welcomed by taxpayers who are paying for and living in rented accommodation. This new tax credit will be worth €500 per year and will be available to each person who is paying rent, as opposed to each tenancy.  

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Rent Tax Credit is a claimable tax relief if you paid for private rented accommodation.

Parents who pay rent on behalf of university going children can also claim the tax credit up to the value of €500 per parent, meaning a total tax credit of €1,000 per year.  The credit has been implemented for years 2022 –2025. 

Irish Tax Rebates will be able to claim the 2022 credit on behalf of our clients from early 2023. 

The rental property must be registered with the Residential Tenancy Board (RTB) as a registration number of the property is required to claim the credit. 

In the case of rent paid on behalf of a qualifying child, neither the child nor the individual can be a relative of the landlord.  

This newly introduced rent tax credit is only for those paying for private rented accommodation and not for those receiving social housing support.  

To claim this credit in early 2023, you must retain your lease agreement and proof of payments. You will have to provide Irish Tax Rebates with the landlord’s name and address and the properties RTB number.