What is Rent Tax Credit?

Rent Tax Credit is annual tax credit for PAYE workers paying rent on private rented accommodation in Ireland.

2025 Rates:

• Single person: €1,000 per year
• Married/civil partner couples: €1,000 per year total (€500 each)

How credit works: Reduces tax liability by credit amount. If paying tax, saves €750/€1,000 annually (€63-€83/month less tax deducted from wages).

Who Qualifies for Rent Tax Credit?

Must meet ALL criteria:

1. PAYE employee: Must be employed paying PAYE tax (self-employed not eligible)
2. Private rented accommodation: Renting from private landlord (not council/social housing)
3. Primary residence: Accommodation is your main home
4. Registered tenancy: Tenancy registered with Residential Tenancies Board (RTB)
5. Rent paid personally: You pay rent (not employer or family)
6. No housing assistance: Not receiving HAP, RAS, or rent supplement

Who Does NOT Qualify?

• Social housing tenants: Council housing, local authority accommodation
• HAP recipients: Housing Assistance Payment covers rent
• RAS tenants: Rental Accommodation Scheme
• Rent supplement recipients: Receiving social welfare rent support
• Living rent-free: Staying with family without paying rent
• Property owners: Paying mortgage on owned property
• Self-employed only: No PAYE employment

How Much is Rent Tax Credit Worth?

Monthly Value

Single person:

• Annual credit: €750
• Monthly value: €750 ÷ 12 = €63/month less tax

Married/civil partner couple:

• Annual credit: €1,000 total
• Per person: €500 each
• Monthly value per person: €500 ÷ 12 = €42/month less tax each
• Total couple: €83/month combined

Annual Savings Examples

How to Apply for Rent Tax Credit

Step 1: Verify RTB Registration

Tenancy must be registered with Residential Tenancies Board. Check via:

• Ask landlord for RTB registration number
• Or search RTB tenant portal at rtb.ie
• If not registered, cannot claim credit (ask landlord to register)

Step 2: Gather Required Information

Need before applying:

• Landlord name and address
• Landlord PPS number (if known) or tax reference number
• Property address (eircode)
• Monthly rent amount
• Lease start and end dates
• RTB registration number

Step 3: Apply via MyTaxRebate.ie

1. Log into MyTaxRebate.ie at revenue.ie
2. Go to 'PAYE Services'
3. Select 'Review Your Tax' for current year
4. Click 'Rent Tax Credit'
5. Enter landlord and property details
6. Enter rent amount and lease dates
7. Submit application

Step 4: Revenue Processing

Revenue verifies tenancy against RTB register (1-2 weeks). If approved:

• New Tax Credit Certificate issued including Rent Tax Credit
• Certificate sent electronically to employer
• Employer updates payroll
• Credit applied through wages from next pay period
• Backdated refund for year-to-date processed

Timeline: 3-4 weeks from application to credit applied and refund received

Backdating Rent Tax Credit

Must apply annually - credit not automatic. Can backdate up to 4 years if eligible but did not claim.

Example: Renting since 2021, never claimed

• 2021: €500 (old rate)
• 2022: €500
• 2023: €500
• 2024: €750 (new rate)
• 2025: €750
• Total 5-year refund: €3,000

How to backdate: File Form 12 for each missed year via MyTaxRebate.ie, providing lease details and RTB registration for each year.

Rent Tax Credit for Couples

Married couples or civil partners get €1,000 combined (€500 each). Both partners must:

• Be PAYE employees
• Live at rented property
• Be named on lease (or at minimum, one named with other as occupant)

Optimisation for Couples

• Both working: Apply for €500 credit each - total €1,000
• One working: Working partner gets €500 only (cannot claim other spouse €500 if not PAYE employee)
• Joint assessment: Married couples jointly assessed can optimise credit distribution

Common Issues and Solutions

Issue: Tenancy Not Registered with RTB

Solution: Ask landlord to register tenancy with RTB. Landlord legally required to register. Once registered, apply for Rent Tax Credit.

Issue: Landlord Refuses to Provide PPS Number

Solution: PPS number not mandatory if you provide landlord tax reference number. If neither available, Revenue may still process with landlord name and property address.

Issue: Application Rejected - Reason Unknown

Common reasons:

• Tenancy not found in RTB register
• Property flagged as HAP/social housing
• Landlord details do not match RTB records

Solution: Contact Revenue MyEnquiries with RTB registration number for manual review.

Issue: Moved House Mid-Year

Solution: Can claim Rent Tax Credit for both properties in same year. Submit separate applications for each lease period. Full annual credit available regardless of moves.

Rent Tax Credit vs HAP

Cannot claim both Rent Tax Credit and Housing Assistance Payment:

Key Points

• €750 (single) or €1,000 (couple) annual credit for private renters
• Only PAYE employees qualify - self-employed excluded
• Tenancy must be RTB registered to claim credit
• Must apply annually - credit not automatic
• Apply via MyTaxRebate.ie with landlord and lease details
• Credit applied through wages - €63-€83/month less tax
• Can backdate 4 years = up to €3,000 missed credit
• Cannot combine with HAP, RAS, or social housing