Work From Home Tax Relief Ireland 2025: Full Guide

Reviewed by: MyTaxRebate Team on 11 Mar 2026 | Authority: s.865 TCA 1997 | TDM Part 05-02-13

Quick Answer

The work from home tax relief in Ireland for PAYE workers is officially known as the e-worker relief. It allows you to claim back 30% of your qualifying utility costs (electricity, heating, and broadband), apportioned for the days you actually work from home.

For example, a full-time remote worker spending €2,400 a year on qualifying bills can claim an annual tax credit of around €144. Under s.865 TCA 1997, you can backdate your claim for all four open years (2022, 2023, 2024, and 2025) simultaneously. It's completely separate from the optional €3.20/day employer allowance.

What This Page Covers

✓What the e-worker relief is and who qualifies.
✓How to calculate your annual WFH tax credit.
✓The difference between the Revenue e-worker relief and the €3.20/day employer allowance.
✓How to claim for all four open years (2022 to 2025).
✓Combining WFH relief with flat-rate and medical expenses for a larger refund.

Key Facts at a Glance

✓E-worker relief covers 30% of qualifying home expenses (electricity, heating, broadband) × your WFH day proportion.
✓Formula: (WFH days ÷ total working days) × 30% × annual utility cost × 20% (or 40% for higher rate taxpayers) = tax credit.
✓Claims can be backdated up to four years. Currently, 2022, 2023, 2024, and 2025 are open.
✓The €3.20/day allowance is an optional payment from your employer, not a claim you make to Revenue.
✓Rent, mortgage, and home insurance do not qualify.

What Is the Work From Home Tax Relief?

In Ireland, the work from home tax relief is officially called the e-worker relief. Governed by Revenue's TDM Part 05-02-13, it allows PAYE workers who are formally required by their employer to work from home to deduct 30% of their qualifying utility costs from their taxable income.

There are only three qualifying categories: electricity, heating, and broadband. You cannot claim for other home costs like rent or your mortgage. The 30% rule is fixed by Revenue, not a rough estimate. Once that's calculated, the amount is apportioned based on how many days you worked from home compared to your total working days. Your actual tax credit - the cash back in your pocket - is 20% of that figure if you pay standard rate tax, or 40% if you're on the higher rate.

How the Employer €3.20/Day Allowance Fits In

The employer €3.20/day allowance is a completely separate arrangement. This is an optional, tax-free payment that your employer can choose to pay you directly to help with costs. You don't claim this €3.20 from Revenue.

If your employer does pay you this daily allowance, you can still claim the e-worker relief from Revenue - but only for the portion of your qualifying utility bills that wasn't covered by the allowance. They can coexist, you just need to do the math carefully.

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Why a Full PAYE Review Usually Produces More

If you qualify for home-working relief, there is a very good chance you have other PAYE refund items waiting to be claimed. The most common overlap we see is with flat-rate expenses for occupation-specific costs, alongside medical and dental expenses or rent credits.

That's why MyTaxRebate doesn't just look at WFH in isolation. We always ask: what is the full recoverable refund across all open years when we combine WFH with everything else you're entitled to? A modest WFH claim of a few hundred euro can easily grow into a substantial refund when we add in other reliefs across four years.

Common Errors That Reduce Valid Claims

When people try to claim themselves, we see the same mistakes over and over:

Another big issue is ignoring older years. Many people will claim for 2025 and completely forget that 2022, 2023, and 2024 are still open. Leaving those years untouched means leaving money behind - especially since the 2022 claim year will permanently close at the end of 2026.

Trying to claim rent, mortgage, or home office equipment costs.
Forgetting to deduct reimbursements already received from an employer.
Using just one year's bills as a rough estimate for all four claim years.
Assuming a voluntary, informal choice to work from home qualifies (it must be a formal employer requirement).

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We check for WFH relief, flat-rate expenses, and medical costs across all four open years.

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Tax Scenarios

Standard hybrid worker (2022 - 2025)

Annual qualifying utilities: €2,400. WFH ratio: 3/5 days (60%). Deductible per year: €432. Tax credit at 20%: €86.40. Over four years at similar costs, that's approximately €346. When combined with flat-rate expenses and any medical expenses in the same period, their total four-year refund through MyTaxRebate could reach €800 - €1,200.

Fully remote worker, all four years

Annual qualifying utilities: €3,000. WFH ratio: 5/5 days (100%). Deductible per year: €900. Tax credit at 20%: €180. Over four years: €720 in WFH relief alone. Add in flat-rate expenses (e.g., a teacher at €103.60/year) and the total reaches approximately €1,134.

Employer pays the €3.20/day allowance

A worker receives the employer's tax-free €3.20 daily allowance but still wants to claim the e-worker relief. Because the €3.20 is a flat contribution and not a full reimbursement of their specific utility bills, the worker can still claim the e-worker relief from Revenue on the remaining out-of-pocket qualifying costs.

Four-year combined claim with other reliefs

A PAYE worker claiming the e-worker relief alongside flat-rate expenses and medical expenses submits all three in a single four-year engagement. WFH relief: ~€346. Flat-rate: €414. Medical: €200. Total four-year refund: ~€960, issued in a single Revenue payment.

Common Mistakes To Avoid

✗Confusing the employer €3.20/day allowance with a Revenue claim. The €3.20 is an employer payment; the e-worker relief is what you claim from Revenue.
✗Claiming rent, mortgage interest, or equipment. Only electricity, heating, and broadband qualify.
✗Referencing 2020 or 2021 as open claim years. The window for those years closed on 31 December 2024.
✗Not claiming because the per-year amount seems small. Over four years, combined with flat-rate and medical reliefs, refunds often reach €800 - €1,400.
✗Delaying the claim. The 2022 claim year closes on 31 December 2026 - claim all four years now before losing the oldest one.

When This Does Not Apply

Informal Home Working: The e-worker relief does not apply to informal or voluntary home working without a formal employer requirement. Furthermore, if your employer has fully reimbursed your utility costs, you cannot claim the relief.

Self-Employed Workers: Self-employed workers cannot use the PAYE e-worker mechanism; they must claim their home office expenses through the annual Form 11 self-assessment return.

Check Eligibility First: If you are in doubt about whether your home-working arrangement qualifies, request written confirmation from your employer before submitting a claim, as Revenue may ask for it.

Key Takeaways

Work from home tax relief in Ireland is the Revenue e-worker relief: 30% of electricity, heating, and broadband apportioned to your WFH days.
The employer €3.20/day allowance is a separate employer payment, not a Revenue claim.
There are four open years right now: 2022, 2023, 2024, and 2025 (2020 and 2021 are permanently closed).
MyTaxRebate combines WFH relief with all other PAYE reliefs in a single four-year claim to maximise your refund.

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Frequently Asked Questions

How much WFH tax relief can I claim in Ireland?

The amount depends on your qualifying utility costs, your WFH day ratio, and your tax rate. For a standard rate taxpayer paying €2,400 in qualifying utilities and working from home 3 out of 5 days, the e-worker relief produces about €86 per year.

What is the employer €3.20 per day allowance?

It is an optional, tax-free payment that an employer can make directly to an employee to help cover home-working costs. You do not claim this from Revenue; it is separate from the e-worker tax relief.

Can I claim WFH tax relief for 2022 and 2023?

Yes. Under s.865 TCA 1997, you can backdate WFH relief claims for four years. Currently, the four open claim years are 2022, 2023, 2024, and 2025. You can claim all four years simultaneously.

What home expenses qualify for e-worker relief?

Only electricity, heating (gas, oil, solid fuel), and broadband qualify. Rent, mortgage interest, home insurance, water charges, and household equipment do not qualify.

Do I need to keep utility bills for a WFH claim?

Yes. Revenue may request utility bills if your claim is queried. It is highly advisable to keep your electricity, heating, and broadband bills for each of the four open years, along with an employer confirmation letter.