Rent tax credit to rise to €1,000 next year - and has been back-dated to add another €250 for 2024

THE RENT TAX Credit is set to increase to €1,000 per person next year as part of the measures announced under Budget 2025.

In another boost for renters, the €250 increase has also been back-dated for 2024 so that people can claim €1,000 for this year.

The measure was first introduced as part of Budget 2023 to help people who “do not get any other housing supports”, then-Finance Minister Paschal Donohoe said.

This year’s credit was originally €750, and those who have already claimed it will be eligible for the €250 top-up.

The housing charity Threshold said that although the increased credit was welcome, the housing crisis would only be properly addressed through measures to increase access to affordable housing.

“Spending must be accompanied by a long-term roadmap to move toward a unitary housing system in which all households have access to affordable housing,” the charity said in a statement.

How to claim the credit

Tax-paying renters can claim the money back from Revenue, provided they take what Revenue describe as “all reasonable steps” to be registered with the Residential Tenancies Board (RTB).

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The RTB number is usually provided by the landlord who registers the tenancy, but Revenue acknowledges that cases may arise where tenants are unable to provide the number when they claim the credit.

In cases where the RTB number can’t be provided, Revenue say that a renter will not be prevented from claiming the credit, but warns that they may be asked to provide the number and other records related to their rental arrangement at a later date.

The credit can be claimed on an individual basis, so even those living with housemates or a partner can claim the full amount.

Married couples and civil partners can claim together for double the amount, which is equivalent to €2,000 for 2025 (and an additional €2,000 for this year for those who have not claimed the credit yet).

Claimants have up to four years to claim the credit.

The credits are not available to ‘supported tenants’, such as those who avail of the Housing Assistance Payment (HAP), the Rental Accommodation Scheme, or a Rent Supplement Payment.

People living in Cost Rental dwellings are also not entitled to it.

For parents of students, Revenue previously told The Journal that the claimant’s child must have been under 23 at the start of the tax year in which the first started on a college course in order for the Rent Tax Credit to apply.

“Students who pay their own rent in ‘digs’ are already eligible to claim the Rent Tax Credit, no change has been made in respect of this,” a spokesperson added.

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