Just 25% of people who are entitled to the new rent tax credit have claimed it so far, according to new data from Revenue.
The latest figures show that 120,000 renters have sought the credit, despite Government estimating that around 400,000 people should be able to.
The credit was announced in Budget 2023 and offers €500 per year for individual taxpayers and up to €1,000 per year for jointly assessed married persons or civil partners. The credit is being restrospectively applied to 2022.
Revenue’s National PAYE Manager, Aisling Ní Mhaoileoin said: “We have already seen a good level of engagement on Rent Tax Credit. Over the course of the last month, over 120,000 claims for Rent Tax Credit have been made by PAYE taxpayers on their Income Tax return for 2022. This number is second only to medical expenses in terms of volume of claims. This is particularly significant given that this is a new tax credit announced as part of Budget 2023.
“For those who may not be aware, I would like to highlight that, unlike usual tax credits introduced by way of the Budget, the Rent Tax Credit applies retrospectively for 2022. This means that those who met the eligibility criteria for the credit during last year can claim it now on their Income Tax return for 2022 and receive any refund due promptly.
“The value of the credit is up to €500 per year for individual taxpayers and up to €1,000 per year for jointly assessed married persons or civil partners. For 2023, we expect that from mid-February, customers will be able to claim the credit in real-time through the ‘Manage Your Tax’ option in myAccount.
“The preliminary statistics show that the vast majority of claimants to date, some 90%, have indicated that they are in a tenancy that is registered with the Residential Tenancy Board. The remaining 10% report being in a ‘rent a room’ or ‘digs’ situation. 88% of those claiming are doing so in respect of their own private residence as opposed to just 12% who are claiming for tenancies that are required for work reasons or for attending an approved course. Almost all claims to date relate to a PAYE taxpayers own rent payments, as opposed to claims on behalf of dependants.”