Dáil Éireann Debate, Tuesday - 23 June 2026
240. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the estimated first and full year 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 €1,500 and a maximum credit of €2,500, per year, clarifying both the full cost and the estimated net cost if the Government has any funding allocated for rent relief in 2027. [47034/26]
Amharc ar fhreagraThe 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-2028.
The value of the credit for 2024 and subsequent years is €1,000 for a singly assessed individual and €2,000 for a jointly assessed couple. The extent to which a claimant 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.
The Rent Tax Credit was extended for a further three years, to the end of 2028 in Budget 2026 and Finance Act 2025. The Budget 2026 'Tax Policy Changes' document sets out an estimated first and full year cost of €350 million for this extension. This is an estimate of Exchequer costs rather than an allocation.
I am advised by Revenue that the estimated first and full year costs to the Exchequer in 2026 of the proposal outlined by the Deputy would be €185m (first year) and €210m (full year).
