Health Insurance Tax Relief

If you're paying for health insurance in Ireland, you might be wondering whether you can claim tax relief on your premiums. The answer isn't quite as straightforward as many people expect. While health insurance itself is generally paid from your net income (after tax), there are significant tax relief opportunities available for the medical expenses you pay out-of-pocket, even when you have insurance coverage. Understanding how health insurance tax relief works in Ireland can put hundreds—even thousands—of euros back in your pocket each year.

Understanding Health Insurance and Tax Relief in Ireland

The relationship between health insurance and tax relief in Ireland operates on two distinct levels. First, most private health insurance premiums receive tax relief at source—meaning you automatically get the benefit through reduced premium costs. This relief is applied directly by your insurer at 20%, so you never pay the full gross amount.

However, the real opportunity for additional tax relief comes from the medical expenses you still pay despite having insurance. These out-of-pocket costs—including excess payments, non-covered treatments, and expenses that fall outside your policy—qualify for medical expenses tax relief through Revenue. In 2025, you can claim 20% tax relief on qualifying medical expenses, and if you're a higher-rate taxpayer (40%), you can claim at that rate for certain expenses.

What Medical Expenses Qualify for Tax Relief When You Have Insurance?

Even with comprehensive health insurance coverage, Irish taxpayers routinely incur medical expenses that qualify for tax relief. Here's what you can claim using the MED1 form:

• GP Visits and Consultations: Co-pays, excess fees, or visits not covered by your policy
• Hospital Stays and Procedures: Excess payments, private room upgrades, and treatments with limited coverage
• Dental Treatment: Non-routine procedures like crowns, bridges, extractions, and orthodontics (routine check-ups and cleaning don't qualify)
• Prescription Medications: Any medications prescribed by a doctor, including the Drug Payment Scheme threshold amount
• Physiotherapy: Treatment prescribed by a medical practitioner
• Diagnostic Tests: Scans, blood work, and other diagnostic procedures not fully covered
• Medical Equipment: Prescribed aids, mobility devices, and necessary medical equipment
• Nursing Home Costs: Approved nursing home expenses not covered by Fair Deal or insurance

For a comprehensive breakdown of all qualifying expenses, visit our detailed guide on medical expenses tax relief in Ireland.

Real Examples: How Much Tax Relief Can You Claim?

How to Claim Medical Expenses Tax Relief with the MED1 Form

Claiming tax relief on your out-of-pocket medical expenses requires submitting a MED1 form to Revenue. While this might sound simple, maximizing your claim requires careful attention to detail:

1. Gather All Documentation: Collect receipts, invoices, and statements for all qualifying medical expenses, including those that went through insurance with an excess payment
2. Separate Qualifying vs Non-Qualifying Costs: Ensure you're only claiming eligible expenses (routine dental check-ups, for instance, don't qualify)
3. Complete the MED1 Form Accurately: Detail each category of expense with supporting documentation
4. Include Family Members: You can claim for yourself, your spouse/partner, and dependent children
5. Submit Within the Time Limit: You can claim back up to four years of medical expenses

Professional tax assistance ensures you identify every qualifying expense and present your claim in a way that maximizes your refund. Many people miss significant relief simply because they're unaware certain expenses qualify or they don't maintain proper records throughout the year.

If you've incurred hospital bills and want to claim tax back, professional guidance can make the difference between a partial refund and getting everything you're entitled to.

Don't Forget About Dental Expenses

Dental treatment represents one of the largest categories of claimable medical expenses for people with health insurance. Most health insurance policies in Ireland provide limited dental coverage, leaving substantial out-of-pocket costs.

Remember, you can claim tax relief on non-routine dental procedures including fillings, extractions, root canals, crowns, bridges, dentures, and orthodontic treatment. Routine examinations and hygienist appointments don't qualify, but the vast majority of actual dental work does.

For specific guidance on dental claims, read our comprehensive article on how to claim tax back on dental costs in Ireland.

Important Considerations for 2025

Several key points apply to health insurance-related medical expense claims in 2025:

• The €125 Threshold No Longer Applies: Previously, claims under €125 couldn't be processed, but this restriction was removed
• Drug Payment Scheme: If you're on the Drug Payment Scheme (€80 per month in 2025), all amounts you pay toward this threshold are claimable
• Long-Term Illness Scheme: Even if you have a medical card for specific conditions, other medical expenses remain claimable
• Cross-Border Treatment: Medical treatment received in other EU countries or abroad also qualifies if it would have qualified in Ireland
• Higher-Rate Taxpayers: If you pay the 40% tax rate, certain expenses (mainly nursing home costs) can be claimed at the higher rate

Frequently Asked Questions