Thousands Overlook €2,000 Rent Tax Credit Amid Cost of Living Crisis

Thousands of households are missing out on a potential cash boost of €2,000 through the Rent Tax Credit, which has seen a significant increase in Budget 2025. This tax credit is one of the least claimed benefits, yet it offers essential financial relief during the ongoing cost of living crisis.

The Rent Tax Credit was raised to €1,000 for individuals and €2,000 for couples who are jointly assessed for tax. This boost is crucial for renters facing increased financial pressures. Many individuals may be eligible for this tax credit, which directly reduces the income tax owed, depending on the amount of rent paid.

Eligibility and Claiming Process

To qualify for the Rent Tax Credit, individuals must pay rent. The credit allows taxpayers to claim a portion of their rent payments from the previous years in their income tax returns. Additionally, PAYE taxpayers can claim the credit for rent payments made in 2025. The credit is available for rental payments made from 2022 to 2025.

For the years 2024 and 2025, the Rent Tax Credit is calculated as 20% of rent payments made, up to a maximum credit limit. Specifically, the limits for 2024 were initially set at €750 for individuals and €1,500 for couples but were increased retrospectively in Budget 2025. For 2022 and 2023, the credit was €500 for individuals and €1,000 for couples.

If several tenants are renting a property, each individual or couple can claim the Rent Tax Credit based on their respective rent contributions. However, claims cannot be made for rent payments that do not meet the stipulated conditions.

How to Claim the Credit

PAYE taxpayers can easily claim the Rent Tax Credit for rent paid in 2022 or 2023 through the online portal known as myAccount. They can also include rent payments made in 2024 in their claims. This streamlined process aims to encourage more individuals to take advantage of the tax relief available.

As the cost of living continues to rise, it’s vital for renters to explore all available financial assistance options. Many are unaware of the potential savings offered by the Rent Tax Credit. By making a claim, households can alleviate some of the financial burdens they face during these challenging times.

In summary, the Rent Tax Credit represents an important opportunity for financial relief. Households should ensure they do not overlook this benefit as they navigate the complexities of rising living costs.