Tax relief and other tax issues for people renting

If you pay rent, you may qualify for the Rent Tax Credit. The credit reduces the amount of income tax you owe and is available for the years 2022, 2023, 2024 and 2025.

Budget 2026: extension of the Rent Tax Credit

The Rent Tax Credit will be extended for a further 3 years, to the end of 2028. There is no change to the amount of the credit for these years.

How much is the Rent Tax Credit?

The Rent Tax Credit for 2024 and 2025 is 20% of the rent you paid in a year, up to a maximum credit of:

• €1,000 per person
• €2,000, if you are a couple jointly assessed for tax

For 2022 and 2023, the credit was €500 for an individual and €1,000 for a couple.

Who can get the Rent Tax Credit?

The tax credit is available for rent you have paid for:

• Your home
• A second home you use to take part in an approved course or your work
• A property your child uses so they can take part in an approved course, if they are under 23 at the start of their first year

Your tenancy must be registered with the Residential Tenancies Board (RTB), unless you have a licence arrangement.

Licence arrangements cover certain renting situations, such as if you are renting a room in your landlord's home. These arrangements are not registered with the RTB, so if you have one, you do not have to meet this requirement to get the Rent Tax Credit.

You cannot claim the credit if you are getting housing support, such as:

• The Housing Assistance Payment
• Rent Supplement
• The Rental Accommodation Scheme
• Cost rental housing

There is more information about this credit in our Rent Tax Credit page.

If your landlord lives outside Ireland, they still need to declare their rental income to Revenue and pay tax on it. They can do this by:

• Getting you to withhold 20% of your gross rent and pay it to Revenue
• Using a collection agent to withhold 20% of your rent to pay it to Revenue

If I pay rent to a collection agent

If you pay your rent to a collection agent, you do not have to deduct tax from your rent. A collection agent is someone who will account for any tax due to Revenue.

A collection agent can be either:

• Someone the landlord knows, like a friend or family member
• A professional such as a letting agent or solicitor

Collection agents can withhold 20% of your rental payment and pay it directly to Revenue. They do this using the Non-Resident Landlord Withholding Tax System (NLWT) available in MyAccount and ROS.

If I pay rent directly to my landlord who lives abroad

If you pay the rent directly to your landlord who lives abroad, you must deduct 20% from your gross rent and pay this to Revenue. The deduction is 20%, because 20% is the standard rate of tax.

This applies even if you pay your rent directly into their bank account, whether in Ireland or abroad. 

The deduction is not your tax relief. It is tax to be paid to Revenue from your landlord's income.

For example, your landlord lives in Germany, and you pay them gross rent of €1,000 per month.

• Tax to be deducted: €1,000 x 20% = €200
• Take the tax due from the gross rent you pay: €1,000 - €200 = €800
  
• Rent you pay your landlord: €800 per month
• Tax you pay Revenue: €200 per month

How do I pay Revenue for the tax deducted from rent?

If you do not deduct tax from rent that you pay directly to a landlord living outside Ireland, you are liable for any tax that should have been deducted, not your landlord.

You use Revenue’s Non-Resident Landlord Withholding Tax System (NLWT) to pay the 20% of your rent to Revenue. This system is available in MyAccount and ROS.

You must make a Rental Notification when you make these payments. The Rental Notification includes details about the landlord and the rental property.

You must make the Rental Notification and 20% payment to Revenue within 21 days of paying your rent to your landlord.

You can set-up repeat Rental Notifications and payments, which means they are automatically made to Revenue every month.

Revenue has detailed information on their website and in their guidance document.