Tax Credits

Wednesday, 11 February 2026

Questions (88, 89)

Pearse Doherty

Question:

88. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the estimated cost in 2026 of increasing the renter tax credit for the year 2026 by €250. [11049/26]

View answer

89. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the cost of increasing the rent tax credit with the credit equivalent to 8.3% of an individual's annual rent with a minimum credit of €1,250 and a maximum credit of €2,500, per year, clarifying both the full cost and the net cost if the Government has any funding allocated for rent relief in 2026. [11050/26]

View answer

Written answers

Tánaiste and Minister for Finance

I propose to take Questions Nos. 88 and 89 together.

The Rent Tax Credit (RTC) was introduced by the Finance Act 2022 and may be claimed by taxpayer units in respect of qualifying rent paid in 2022 and subsequent years to 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 later years, the value of the credit increased to €1,000 for a singly assessed individual and €2,000 for a jointly assessed couple.

I am advised by Revenue that the estimated cost to the Exchequer of increasing the RTC, by €250 to €1,250 for a singly assessed person and by €500 to €2,500 for a jointly assessed couple, on a first and full year basis, is approximately €55m and €60m respectively. This cost is based on the current policy arrangements, where the tax credit is allowable at 20% of the rent paid, subject to the maximum credit values.

Further details in respect of the RTC, can be found at the following links:

• Tax and Duty Manual Part 15-01-11A - https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/ 15-01-11A.pdf

• Revenue website - https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-credit/index.aspx

Question No. 89 answered with Question No. 88.