Dáil Éireann Debate, Wednesday - 14 January 2026
39. Deputy Louise O'Reilly asked the Tánaiste and Minister for Finance if he is aware that a person who is working short hours due to a disability (a person on dialysis) can find themselves without sufficient tax paid to benefit from the renters tax credit; if there is a mechanism for them to avail of the credit; and if he will make a statement on the matter. [2663/26]
View answerThe Rent Tax Credit (RTC) may be claimed by taxpayer units in respect of qualifying rent paid in 2022 and subsequent years to the end of 2028. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment, in which case they are counted as one taxpayer unit. The value of the credit for 2022 and 2023 was €500 for a singly assessed individual and €1,000 for a jointly assessed couple. For subsequent years, the value of the credit has increased to €1,000 for a singly assessed individual and €2,000 for a jointly assessed couple.
It is a general principle that in order to avail of income tax reliefs a person must pay income tax. Therefore, the amount of RTC that can claimed will depend on the amount of rent paid and the amount of income tax paid by the claimant. The extent to which a taxpayer unit benefits from a tax credit, through a reduced tax liability and/or receipt of a refund for overpayment of a tax liability, is determined by their gross tax liability and the use of other tax credits and reliefs. Taxpayers who claim the RTC may not benefit fully from this credit as a result of other reliefs, deductions and tax credits already reducing their net tax liability to nil.
