Rent Tax Credit Calculator Ireland 2027

Budget 2027 Rent Tax Credit increase

Budget 2027 increases the maximum Rent Tax Credit to €1,150 for an individual and €2,300 for a jointly assessed married couple or civil partners.

The calculator now defaults to 2027 but retains the 2026 €1,000 / €2,000 caps for comparison. The usable credit is still constrained by 20% of qualifying rent and by the Income Tax liability available to offset.

What this calculator is for

The Rent Tax Credit reduces Income Tax for qualifying renters. This calculator estimates the credit from the rent and taxpayer circumstances entered, subject to the annual cap and available Income Tax liability.

What limits the credit

The usable credit is the lowest of three figures: 20% of qualifying rent, the relevant statutory cap for the selected year, and the Income Tax liability available to offset. The calculator now names whichever of those is currently binding.

The effective-rent-relief percentage divides the usable credit by the qualifying rent you entered. It is a descriptive ratio, not a separate statutory rate. A household can therefore have the same statutory cap as another household but a different effective percentage because the rent paid or available Income Tax liability differs.

How to read the result

A tax credit cannot generally create an Income Tax refund beyond tax that would otherwise be due. The amount of rent paid is therefore only one constraint; eligibility and Income Tax liability also matter.

Worked example

If a qualifying renter’s calculated credit is €1,000 but they have only €600 of Income Tax liability available to offset, the usable credit can be limited by that tax liability.

Irish context

Revenue states that the Rent Tax Credit is available for tax years 2022 to 2028 and can be claimed in-year for 2026 by PAYE taxpayers through myAccount. Conditions differ depending on whether the rented property is your principal private residence, a second home used for work/education or accommodation rented for a child.

What can change the answer

Rent paid, number of eligible claimants, Income Tax liability, tenancy circumstances and relationship between tenant/landlord can all matter. Rules have changed since the credit was introduced, so use current Revenue guidance.

Common mistakes to avoid

Do not assume every euro of rent produces a euro of credit. Do not confuse the credit with a rent subsidy paid by the landlord. And do not assume eligibility if the tenancy does not meet Revenue’s conditions.

Related Compound tools

Use the Take-Home Pay Calculator for the wider tax picture and the Rent vs Buy Calculator for a long-term housing comparison.

Frequently asked questions

Can I claim it during 2026?

PAYE taxpayers can claim in-year through Revenue’s current process.

Does it reduce USC or PRSI?

It is an Income Tax credit.

Is it available through 2028?

Revenue currently states the credit applies for tax years 2022–2028.

Does the calculator prove eligibility?

No.

Eligibility matters as much as the headline maximum

The annual maximum is only the top of the calculation. To benefit, the claimant must satisfy the qualifying conditions and have enough Income Tax liability to offset.

That is why two renters paying the same monthly rent can receive different effective benefits. One may have enough Income Tax liability to use the full available credit while another may not.

Revenue distinguishes between qualifying rent paid for a principal private residence, certain second-home situations linked to work or education, and rent paid for accommodation used by a child in specified circumstances. Relationship and tenancy conditions can also matter.

Keep evidence of rent paid and the landlord/property information Revenue requires. If the tenancy changes during the year, calculate from the actual qualifying rent rather than simply multiplying the final month’s rent by 12.

The credit is valuable, but it should not be treated as a permanent reduction in rent: it is a tax measure with statutory dates and rules that can change.

See which limit is actually binding

The calculator now makes the three constraints explicit: 20% of qualifying rent, the statutory annual maximum, and the Income Tax liability available to absorb the credit.

In 2027, an individual needs €5,750 of qualifying annual rent for 20% of rent to reach the €1,150 statutory cap. A jointly assessed couple reaches the €2,300 cap at €11,500 of qualifying rent. The 2026 caps remain selectable for comparison. Paying more qualifying rent does not increase those statutory maxima.

The results therefore show both the qualifying rent needed to reach the statutory cap and any part of that cap left unused in the scenario. A low Income Tax liability can still reduce the usable credit even where enough rent was paid.

The headline maximum is only one of several limits

The calculator retains the previous €1,000 individual / €2,000 joint cap for 2026 and applies the Budget 2027 €1,150 / €2,300 cap when 2027 is selected. But the statutory maximum is not automatically the amount you receive.

The usable credit can be constrained by qualifying rent, your Income Tax liability and the eligibility rules for the tenancy. That is why this calculator exposes the binding limit rather than only showing the headline cap.

If a single claimant has enough qualifying rent to support the €1,000 maximum but only €600 of Income Tax liability available for the credit to reduce, the practical benefit can be lower than €1,000. The credit is an Income Tax credit; it is not a cash subsidy added on top of zero tax.

What counts as rent for this calculation

Revenue distinguishes rent from extra services. Utilities, board, laundry and similar service charges should not simply be included in the qualifying-rent input because they are not necessarily part of rent for the credit.

If a monthly payment bundles rent and services together, separate the rent element before entering the figure where possible. That avoids overstating the amount supporting the claim.

Claiming in 2026

PAYE taxpayers can claim the 2026 credit in-year through myAccount under the current-year tax management process, or claim it after year end through the 2026 Income Tax Return in 2027. The calculator does not submit a claim; it estimates the potential value based on the assumptions entered.

Eligibility can also extend beyond a principal private residence in certain cases, including qualifying accommodation connected with work or an approved course, and certain accommodation paid for by a parent for a child attending an approved course. Those cases have conditions that must be checked separately.

A useful rent-budget perspective

The effective rent relief output converts the annual credit into a percentage of qualifying rent. This is useful because a €1,000 credit has a very different household-budget impact on €8,000 of annual rent than on €24,000.

For a wider housing comparison, use the Rent vs Buy Calculator and House Buying Costs Calculator. The tax credit can reduce the net cost of renting, but it should be one input in the comparison rather than the entire decision.

See Revenue’s current Rent Tax Credit guidance and 2026 claiming instructions.

Method and limitations

The calculator applies the implemented annual credit limit to the qualifying rent/tax assumptions entered. It does not validate tenancy registration, landlord relationships, duplicate claims or every eligibility condition.

Useful sources

• Revenue — Rent Tax Credit
• Revenue — How to claim Rent Tax Credit