Tax Tips

Everything You Need to Know About Personal Tax Credits

What is a Personal Tax Credit?

Personal tax credits are due to every taxpayer resident in Ireland and serve to reduce the amount of income on which you are required to pay tax, ultimately lowering your overall tax liability. Personal tax credits are divided into various categories, and the specific credits applicable to you will depend on your marital status – Single, Married, Civil Partnership, Widowed, A Surviving Civil Partner, Separated, Divorced or a Former Civil Partner.

Personal tax credits and Employee tax credits are usually applied every year at the source of income, however, you will need to inform the Revenue Commissioners of your current marital status. Irish Tax Rebates can assist you in informing the Revenue Commissioners of your recent marriage.

Otherwise, you may not be availing of the relevant tax credit and could be overcharged on your taxes as a result!


tax-credits explained

Tax Credits Explained

To help you better understand tax credits, the team here at Irish Tax Rebates have put together an easy-to-follow breakdown of the various categories of personal tax credits.


Personal Tax Credit

Recently in the Budget for the 2024 tax year, the Government increased the Personal Tax Credit from €1775 to €1875. Depending on your earnings, nearly all workers are entitled to this tax credit.


Employee Tax Credit

In addition to the above, the Government increased the Employee Tax Credit from €1775 to €1875. Provided you are earning PAYE income, you will get this credit also.


Single Parent Tax Credit

The Single Parent Tax Credit was recently increased from €1650 to €1750 in Budget 2024 and can be claimed in addition to the personal tax credit.

The Single Parent Tax Credit is there for those who have children but are not cohabiting.  Persons eligible to claim the single parent tax credit include those with children who may be separated, divorced, or a former civil partner. If the child resides with both parents for part of the year, only one-parent can claim the full Single Person Child Carer credit subject to Revenue guidelines. 

Contact us for information regarding the relinquishment of the tax credit to a secondary claimant.


Married Person Tax Credit or Civil Partner Tax Credit

This tax credit is applicable to individuals who are married or in a civil partnership. Whichever member of the couple that opted to be the assessable spouse or nominated civil partner is entitled to claim this tax credit if they so wish.

This is if they are assessed based on Joint Assessment i.e., assessed for taxation on the couple’s combined total income. The Married Persons or Civil Partner Tax Credit is currently €3,550 and will increase to €3750 from 2024.


Widowed Person or Surviving Civil Partner Tax Credit

The amount of this tax credit depends on whether the widowed person or the surviving civil partner has dependent children and also depends on when their spouse or civil partner passed away. The standard person or surviving civil partner tax credit is €2315, however, this will be increased to €2415 commencing 2024.

Where a widowed person or surviving civil partner has dependent children, they will also be eligible for the Single Person Child Carer credit in addition to the Widowed Person or Surviving Civil Partner Tax Credit.


Claim tax back?

Irish Tax Rebates help thousands of people in Ireland every year to claim tax back. 3 out of every 4 people are eligible for tax back and the average tax rebate is €1,100. Apply Online today to begin the tax back process.

New Customers: Apply here.

Existing Customers: Apply For Additional Rebate