Proposals under review in the Budget could see tenants receiving an additional €250 in rental tax credit. Negotiations are ongoing to potentially raise the existing tax credit from €750 to €1,000. Finance Minister Jack Chambers and Housing Minister Darragh O’Brien, both from Fianna Fáil, have expressed their desire to increase the rent tax credit in recent times.
Under the present tax credit scheme, tenants can claim a maximum credit of €750 as individuals, or €1,500 if they are married couples or civil partners evaluated jointly for tax.
If the Budget proposals are approved, tenants could receive an extra €250 for 2024, adding to the existing €750 credit. This increased amount may be claimed from January. In addition, the rental tax credit could rise to €1,000 for 2025, meaning individuals could receive up to €2,000 over the two-year period. Jointly evaluated couples are also expected to get up to €2,000 in rent tax credit for both 2024 and 2025.
Mr O’Brien expressed his support on Monday for implementing these increases to the rental tax credits within the Budget. He stated the rental tax credit could significantly help in alleviating expenses for renters while focusing on the issue of high rents. He also shared that they have been working towards providing more affordable rental alternatives. He expressed his desire to establish a significant increase in the rental tax credit to benefit those in the rental market and hopes for progress in this area by next year.
Mr. O’Brien said he believes many renters would greet such a development warmly.