Rent Tax Credit to increase to €750

The tax credit will also be amended to include parents who are paying for students living in “rent a room” or “digs” accommodation

Today, it was announced that the rent tax credit will be increased from €500 to €750 as part of a €1.16bn suite of tax measures as part of Budget 2024.

Claimants will have up to four years to claim the credit, and it is claimed on an individual basis, meaning those living with housemates or a partner can claim the full amount.

The credit will also be amended to include parents who pay for students living in “rent a room” or “digs” accommodation. The claimant’s child must have been under 23 at the start of the year in which the student started College, and this will be backdated to allow for claims for the 2022 and 2023 tax years. 

This increase in the rental tax credit comes one year after its original introduction in Budget 2023, with then-Minister for Finance Pascal Donohue claiming it was introduced for people who “do not get any other housing supports”.

As of the end of September, over 290,000 claims for the rent tax credit were made out of an estimated 400,000 eligible individuals. 

In order to claim the rental credit, your tenancy must be registered with the Residential Tenancies Board (RTB), which has drawn some criticism due to many tenants not being able to make a claim. 

The credit is not available for “supported tenants” such as those under the Housing Assistance Payment (HAP) scheme, the Rental Accommodation Scheme, a Rent Supplement Payment, or those living in Cost Rental accommodation. 

National housing charity Threshold welcomed the measure, however stating that it must be part of a “wider cohesive approach” to end the housing crisis, further expressing their disappointment that measures to increase security of tenure were not adopted.