Nursing Home Fees Tax Relief

Nursing home fees can place an enormous financial burden on Irish families, with monthly costs often ranging from €3,000 to €6,000 or more. What many people don't realise is that a significant portion of these expenses may qualify for tax relief, potentially saving thousands of euros annually. If you or a loved one has incurred nursing home costs in Ireland, understanding how to claim this relief could provide much-needed financial support during an already challenging time.

Understanding Nursing Home Tax Relief in Ireland

Nursing home fees qualify for medical expenses tax relief under Irish tax law, providing relief at your marginal rate of tax (either 20% or 40%). Unlike the standard medical expenses relief that typically provides 20% relief on approved expenses, nursing home costs can attract relief at your highest rate of tax if they're deemed necessary on medical grounds.

The key principle is that when a person resides in a nursing home due to medical necessity—certified by a qualified medical practitioner—the costs associated with their care and accommodation qualify for tax relief. This applies whether the nursing home is public or private, and whether located in Ireland or abroad.

What Nursing Home Expenses Qualify for Tax Relief?

The following nursing home expenses are typically eligible for tax relief:

• Accommodation and maintenance costs: Room charges, meals, and general upkeep
• Nursing care: Professional nursing services provided at the facility
• Medical care: Doctor visits, medical treatments, and medications administered
• Personal care: Assistance with daily living activities necessitated by medical conditions
• Therapeutic services: Physiotherapy, occupational therapy, and similar treatments

It's important to note that the Fair Deal Scheme (Nursing Homes Support Scheme) contributions you make also qualify for tax relief. If you're contributing towards the cost of care under this scheme, these payments are claimable through the medical expenses tax relief system.

How Much Tax Relief Can You Claim?

The amount of tax relief depends on your marginal tax rate. For 2025, Irish tax rates are:

• Standard rate taxpayers: 20% relief on qualifying expenses
• Higher rate taxpayers: 40% relief on qualifying expenses

Unlike other medical expenses where relief is generally at 20%, nursing home fees can attract the higher relief rate because the accommodation element is considered medically necessary when certified appropriately.

Practical Examples: Real Numbers

Who Can Claim Nursing Home Tax Relief?

You can claim tax relief on nursing home fees if you've paid for:

• Your own care in a nursing home
• Your spouse or civil partner's care
• Your dependent children's care
• Care for other relatives, if you're supporting them financially

Multiple family members can claim relief on the same nursing home costs, provided they've each contributed financially. This can be particularly beneficial when siblings share the costs of a parent's care.

Required Documentation

To successfully claim nursing home tax relief, you'll need to provide:

• Itemised receipts: Detailed breakdowns of all nursing home charges paid
• Medical certification: Documentation confirming the medical necessity of nursing home care
• Proof of payment: Bank statements, credit card statements, or other payment evidence
• Completed MED1 form: The official Revenue form for claiming medical expenses relief
• Fair Deal documentation: If applicable, statements showing your contributions under the scheme

Gathering and organising this documentation correctly is crucial for a successful claim. Revenue requires comprehensive evidence, and missing or improperly formatted documentation can delay or reduce your refund.

Time Limits for Claims

You can claim nursing home tax relief for the current tax year and up to four previous years. This means if you haven't been claiming this relief, you could potentially recover thousands of euros in backdated refunds. For 2025, you can claim back to 2021, representing potentially five years of unclaimed relief.

Given the substantial monthly costs of nursing home care, even one missed year could represent tens of thousands of euros in unclaimed tax relief. It's essential to review your records and ensure you're claiming all eligible expenses, including any additional medical and dental expenses incurred during the year.

Nursing Home Relief vs. Standard Medical Expenses

It's important to understand that nursing home relief offers more generous benefits than standard medical expenses relief. While routine medical expenses like GP visits or prescriptions typically provide relief at 20%, nursing home costs can qualify for relief at your marginal rate (20% or 40%) because they encompass medically necessary accommodation and care.

This distinction makes nursing home tax relief one of the most valuable medical expense claims available to Irish taxpayers. However, maximising this relief requires proper classification of expenses and thorough documentation—areas where professional assistance proves invaluable.

Frequently Asked Questions