Press release
Minister McGrath urges renters to claim the Rent Tax Credit
Published on
Last updated on
Published on
Last updated on
The Minister for Finance Michael McGrath, has today (Saturday), urged tenants who are eligible for the Rent Tax Credit to make their claims without delay.
Close to 138,000 claims have already been made for the relief in respect of rent paid in 2022.
Speaking today, he said:
“The Rent Tax Credit was introduced in Budget 2023 as a means to help renters deal with the rising cost of living. This tax credit is different to most as it applies retrospectively for 2022 as well as going forward to 2025.
"To date, 137,697 claims have been made in respect of rent paid in 2022. The vast majority of those taxpayers will have received a refund of €500 paid directly into their bank accounts. This is very welcome given that for many, the cost of living pressures are most acute at the beginning of the year.
"I would strongly urge tenants who have not already done so, and who are eligible for the Rent Tax Credit, to complete their 2022 tax returns through Revenue’s myAccount without delay so they can claim the refund, and any other tax refunds that they may be due.”
The Department of Finance estimates the up to 400,000 tenants may be eligible to claim the relief.
The rent tax credit is valued at up to €500 per person, or €1,000 in the case of a jointly assessed couple, and will be available for the 2022 to 2025 years of assessment inclusive.
The credit is available to tenants in respect of rent payments made in 2022 as well as for 2023, 2024 and 2025. This means that eligible taxpayers can already make a claim. Some 137,697 people have already successfully claimed the credit and have received, or will soon receive, the refund into their bank accounts.
PAYE taxpayers can claim the rent tax credit for the 2022 year of assessment by submitting their Income Tax Returns through the myAccount portal. Revenue have also advised PAYE taxpayers that for claims in respect of rent paid in 2023, they expect that from mid-February, customers will be able to claim the credit in real-time through the ‘Manage Your Tax’ option in myAccount.
Self-assessed taxpayers can claim the rent tax credit for the 2022 year of assessment by submitting their Income Tax Returns through the Revenue Online Service (ROS). The statutory filing deadline for the 2022 tax return for self-assessed taxpayers is 31 October 2023 but the return is available for submission now.
Budget 2023 introduced a new €500 tax credit for renters, with each tax-paying tenant in a particular property being eligible for the credit in their own right. The credit is aimed at, and will be available to, renters who do not receive State housing supports such as the Housing Assistance Payment, the Rental Accommodation Scheme, or approved housing body tenants.
Only one credit may be claimed per person per year, however the value of the credit is doubled in the case of jointly-assessed married couples and civil partners. Certain formalities are needed to be complied with in order to claim the credit, for example, the tenant is obliged to provide details of the property and landlord and to provide a receipt for rent paid if required by Revenue to do so. In addition, certain conditions apply, for example, registration with the Residential Tenancies Board, where appropriate.
In relation to the rent-a-room scheme, it should be recalled that this is an informal accommodation arrangement where the renter is in the home of the home owner. The latter may receive up to €14,000 p.a. without having a liability in tax, USC or PRSI. The proposed rent tax credit is aimed at the renter; however, certain formalities will be need to be complied with in order to claim the credit. This will include providing certain details to Revenue when claiming the relief, for example: name and address of the home owner, Local Property Tax reference number for the property.
The credit will also apply in the case other non-RTB registered tenures where RTB registration is not a legal requirement.
The credit will be available to parents who pay rent on behalf of their student children who are in third-level education. Where a student is under 23 on 1st January of the year of their first point of entry into an approved course, the parent(s) will be able to claim the tax credit for the duration of that course. This applies only in the case of RTB registered tenancies.
The credit may be claimed “in year” in the years 2023 to 2025. In addition, it may be claimed for 2022 early in 2023.