Rent Tax Credit Budget 2027: New €1,150 Credit Explained
Budget 2027 increases Ireland’s Rent Tax Credit to €1,150 for an individual and €2,300 for a jointly assessed couple. Here is what changed, who can claim and what the extra relief is worth.
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Updated 6 October 2026 following the Budget 2027 announcement. The new maximums are €1,150 for an individual and €2,300 for a jointly assessed couple. Revenue guidance and the Finance Bill will determine the final administrative detail.
Budget 2027 has now answered the key question for renters.
The Rent Tax Credit is increasing by €150 per individual.
That takes the maximum from:
- €1,000 to €1,150 for an individual; and
- €2,000 to €2,300 for a jointly assessed married couple or civil partnership.
For someone who qualifies for the full individual credit and has enough Income Tax liability to use it, the increase is worth an extra €150 a year, or €12.50 a month when expressed as a simple monthly equivalent.
For a jointly assessed couple able to use the full combined credit, the increase is €300 a year, or €25 a month.
For the wider package, see our Budget 2027 household guide.
Budget 2027 Rent Tax Credit: before and after
| Existing maximum | Budget 2027 maximum | Increase | |
|---|---|---|---|
| Individual | €1,000 | €1,150 | €150 |
| Jointly assessed couple | €2,000 | €2,300 | €300 |
The credit reduces Income Tax. It is not a direct rent payment and does not reduce USC or PRSI.
That means the headline maximum is only fully useful where the claimant:
- meets the eligibility rules;
- has paid enough qualifying rent; and
- has enough Income Tax liability to offset the credit.
What the extra €150 actually means
Take a single PAYE renter who qualifies for the full credit.
Under the existing maximum:
€1,000 annual Income Tax reduction
Under the Budget 2027 maximum:
€1,150 annual Income Tax reduction
Difference:
€150 a year
That is the direct tax saving created by the Budget increase.
It does not mean rent falls by €150. The landlord still receives the agreed rent; the financial benefit comes through the renter’s tax position.
Who can claim the Rent Tax Credit?
Revenue’s existing rules allow the credit in qualifying cases where rent is paid for:
- your principal private residence;
- another property used to facilitate attendance at work or an approved course; or
- qualifying accommodation used by your child to facilitate attendance at an approved course.
The detailed conditions depend on the rental arrangement.
Where a tenancy is required to be registered with the Residential Tenancies Board, that registration requirement generally has to be satisfied.
Some arrangements, including certain rent-a-room or digs tenancies, can be treated differently under Revenue’s rules.
For the full eligibility detail, read our Rent Tax Credit guide.
Who cannot claim under the existing rules?
A major exclusion applies to supported tenants.
Revenue says the credit is not available where the claimant receives State housing support such as:
- Housing Assistance Payment (HAP);
- Rent Supplement; or
- Rental Accommodation Scheme (RAS).
The credit is also not available simply because a renter pays a top-up above one of those supports.
Other restrictions can apply depending on the landlord, tenancy and relationship between the parties.
Renting from a relative
The relationship rules are more nuanced than a blanket ban on renting from family.
For a principal private residence, Revenue’s current rules restrict claims in certain parent-child arrangements.
Other family tenancies can potentially qualify where the relevant conditions, including RTB registration where required, are satisfied.
Because these cases are fact-specific, Revenue’s qualifying-condition pages are more reliable than a general rule of thumb.
Can parents claim for student accommodation?
Potentially.
The scheme can apply where a parent pays qualifying rent for accommodation used by their child to attend an approved course, subject to Revenue’s specific conditions.
That means the person claiming the credit is not always the person physically living in the rented property.
How do you claim it?
PAYE taxpayers can claim the Rent Tax Credit through Revenue’s myAccount.
The current route is:
myAccount → PAYE Services → Manage your tax for the current year → Add new credits → You and your family → Rent Tax Credit
A claim can also be made through the relevant Income Tax Return.
Self-assessed taxpayers claim through the normal return process.
The Budget increase changes the maximum available; it does not remove the need to make a valid claim.
What records should you keep?
Useful records can include:
- the rental property’s address;
- the amount of qualifying rent paid;
- landlord details;
- RTB registration information where applicable; and
- records showing the rental payments.
Only qualifying rent counts. Amounts paid separately for services such as utilities, food, laundry or other extras may need to be excluded.
Worked example: €1,600 monthly rent
Suppose a single renter pays:
€1,600 per month
Annual rent:
€19,200
Assume the renter meets all Revenue conditions and has enough Income Tax liability to use the full credit.
Under the old maximum:
€1,000 relief
Under the Budget 2027 maximum:
€1,150 relief
The Budget therefore improves their annual position by:
€150
The effective annual rent cost is still overwhelmingly determined by the rent itself. The credit is useful relief, but it is not equivalent to a material cut in market rent.
Does the increase solve rental affordability?
No single tax credit can answer the broader rental-affordability problem.
The direct effect of this measure is clear: qualifying renters can offset more Income Tax.
It does not itself:
- build more rental homes;
- cap the rent on a tenancy;
- reduce the rent a landlord charges; or
- guarantee lower market rents.
That wider debate depends on housing supply, construction, rental regulation and household incomes.
For a renter, however, the practical Budget calculation is straightforward: up to €150 more annual relief per individual.
What should renters do now?
If you are eligible, the useful steps are:
- make sure your tenancy satisfies the relevant Revenue rules;
- keep evidence of qualifying rent paid;
- check whether RTB registration is required and in place;
- claim the credit rather than assuming it is automatic; and
- use the correct tax-year maximum when Revenue updates its systems for the Budget 2027 change.
Frequently asked questions
How much is the Rent Tax Credit after Budget 2027?
The announced maximum is €1,150 for an individual and €2,300 for a jointly assessed couple.
How much did Budget 2027 add?
The increase is €150 per individual, or €300 for a jointly assessed couple using the full combined maximum.
Is the Rent Tax Credit a cash payment?
No. It is an Income Tax credit. It reduces qualifying Income Tax liability.
Does it reduce USC or PRSI?
No. The Rent Tax Credit offsets Income Tax, not USC or PRSI.
Do HAP tenants qualify?
Under Revenue’s existing rules, supported tenants receiving HAP, Rent Supplement or RAS generally cannot claim the credit.
Is the credit automatic?
No. You need to claim it through Revenue and satisfy the scheme conditions.
The bottom line
Budget 2027 has moved the Rent Tax Credit from €1,000 to €1,150 per individual.
For a qualifying single renter who can use the full credit, that is €150 more a year.
For a qualifying jointly assessed couple using the full combined credit, it is €300 more a year.
The amount matters, but eligibility still matters just as much.
This article provides general information on Irish tax and Budget measures. Individual entitlement depends on Revenue rules, the relevant tax year and personal circumstances.
