Budget 2023 was released on 27th of September and introduced a number of changes into the tax system which will take effect from January.  One of the main benefits announced in the Budget 2023 for tax payers was the introduction of a new Rent Tax Credit.

Revenue have not yet published/finalised their criteria for the Rent Tax Credit, however the following has been indicated.

Rent Tax Credit

How Much Do I Save With The Rent Tax Credit?

The Rent Tax Credit will be worth up to €500 Tax Relief per year for eligible tenants.  This means that if you are Married and under Joint Assessment the overall amount will be €1,000.

When Can I Claim This?

As well as being available from 2023 onwards, it will be available from January 2023 to claim against your 2022 taxes.

Who Can Claim it? 

The Rent Tax Credit will be available for taxpayers renting at their Principal Private Property.

Revenue confirmed that parents who pay for their child’s rent accommodation while in full time third level education will also be eligible, but only where the student’s rental agreement is covered by the RTB.

What Are The Criteria?

The full manual and eligibility criteria are yet to be released by Revenue.  At this time we know the following:

      • You can claim only for rent paid by you for your Principal Private Residence. This means that this must be your primary place of residence.
      • An exception to this is a parent may claim for their child’s rent when attending college. But there is a stipulation on this that the rent is paid to a landlord registered with the RTB. This typically would exclude the parent from claiming where their child is renting a room in a house where the owner lives (as these are not subject to registration with the RTB).
      • Students can claim the it themselves directly of course, but it will only result in a refund if they have paid income tax in that year.
      • You must not be in receipt of any Housing Support such as the Housing Assistance Payment.

How Can I Claim the Rent Tax Credit?

If you are an existing client – or new client – of Red Oak, we will review your eligibility for the Rent Tax Credit starting in early 2023 as a part of your annual tax review.

What Can I Do Now?  

If you haven’t completed a review with Red Oak as of yet, or if you have applied for review prior to 2021 we will require an Application form to be filled out HERE.  This will allow us to keep you updated with the Rent Tax Credit, review your taxes for 2018 to 2021 if we haven’t done so already.  You will also get a free review of your Tax Credit Certificate when it is issued this December.

Updated: 02 November 2022