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LAST UPDATE | 10 Oct 2023
THE RENT TAX Credit will rise to €750 next year as part of a suite of tax measures announced by the government.
Moreover, the tax break will be extended to parents who pay the rent of their student children living in ‘digs’. This will be backdated to allow for claims to be made for the years 2022 and 2023.
The €250 increase comes one year after the tax break was first introduced to help people who “do not get any other housing supports”, then-Finance Minister Paschal Donohoe said.
Minister @mmcgrathtd has announced that the rent tax credit is to increase from €500 to €750 per year and will be amended to include parents who pay for their student children who have tenancies in ‘Rent a Room’ or ‘digs’ accommodation. #Budget2024 pic.twitter.com/8hpQE4lGnQ
— Department of Finance (@IRLDeptFinance) October 10, 2023
Threshold, the national housing agency, has welcomed the increase and expansion of the rent tax credit and added that it hopes the measure can “form part of a wider cohesive approach to end the housing supply crisis”.
Tax-paying renters can claim the money back from Revenue as long as their landlord is registered with the Residential Tenancies Board (RTB).
It can be claimed on an individual basis, so even those living with housemates or a partner can claim the full amount. Married couples and civil partners can claim together for double the amount.
As of the end of September, over 290,000 claims have been made, totaling close to €166 million in tax breaks. It is estimated that 400,000 individuals eligible to apply in 2023.
Claimants will have up to four years to claim the credit.
The tax credits will not be available to ‘supported tenants’, such as those who avail of the Housing Assistance Payment (HAP), the Rental Accommodation Scheme, or a Rent Supplement Payment.
People living in Cost Rental dwellings are also not entitled to it.
The scheme has received some criticism due to the requirement for landlords to be registered with the RTB. Some tenants were unable to avail due to this stipulation.
For parents of students, Revenue told The Journal the claimant’s child must have been under 23 at the start of the tax year in which the first started on a college course in order for the Rent Tax Credit to apply.
“Students who pay their own rent in ‘digs’ are already eligible to claim the Rent Tax Credit, no change has been made in respect of this,” a spokesperson added.
Separately, landlords will next year get a tax break of up to €1,000. Those who avail of the cashback will have to remain in the rental market for four years if they avail of the credit.
They will be entitled to have rental income of €3,000 disregarded at standard tax rates in 2024, €4,000 in 2025 and €5,000 for years 2026 and 2027.
Finance Minister Michael McGrath also announced that the entry point for the higher rate of tax for PAYE workers in Ireland will increase to €42,000.
The personal, Employee PAYE and earned income tax credits will all increase by €100.
A single person earning €46,000 in 2024 will see an increase of €2,000 in their net income as a result of cumulative income tax changes and USC changes since 2021, Minister McGrath said.
Changes to USC have also been announced with the 4.5% rate cut to 4% in the first reduction of USC in five years.
Furthermore, the home carer tax credit and the single person child carer credit will both increase by €100. While the incapacitated child tax credit will increase by €200.
The USC concession, which applies to medical card holders and earn less than €60,000 per year is being extended for a further two years until the end of 2025.
Responding to the announcement, Threshold said the tax break “needs to translate into improved security of tenure” and was disappointed that their previous recommendations of sliding scale system to tax rental income was not adopted.
You can find full details of today’s Budget announcement in our roundup here.
Additional reporting by Muiris O’Cearbhaill
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Nice bill for the taxpayer !
Indeed – why should Ireland’s figure head promote Ireland in countries that are up and coming? Should stay here with us and moan about things whilst doing nothing!
great he can visit some of our finest down there ,and by the way is he still mixing with the knobs from Ernst a Young you know the guys that fiddled the books in Anglo to make it look like a profitable bank,
It is essential that the president does his job and promote Ireland – like any high ranking member of a corporation.
But I fail to understand why Mrs Higgins – or any spouse – is going. She wasn’t elected though you’d think she was with all the coverage.
Ah she has to look after the hobbit…er… President!!
Funny though that ” De Prisident” isn’t going to two countries that have a huge Irish ancestry pouplation second only to the USA .That’s Argentina and Paraguy!! Maybe because they are nasty right wing Junta states.But its all right to visit fellow revoulitionary red states that have about as much in connection with Ireland as we have with outer Mongolia.
This is a Republic. Our President is due some respect. Hobbit comments are a disgrace.
Another parasite on this country ,
Hopefully he gets caught in peru too
Maureen
Since the foundation of the State we have elected a succession of Presidents who have served us well and some even magnificently.
For seven years they represent us at home and abroad and echo the Nations need to connect with others at a Social and Economic level for long term betterment of our people.
With one vulgar and offensive word you attribute a characteristic to this man and Office that is wrong and unnecessary but typical of small minded bitterness!
do you use andrex to wash your face dick?
Paul Nelly
What a weird question!
the penny has a parachute…
Do trade missions have any economic/trade benefit?
Canadian research says no.
http://www.nationalpost.com/story.html?id=a8009d33-da9c-4b46-8c7c-5ae9d10c5c45&k=54156
If Mr & Mrs Higgins and Costello want to go on a jolly they should pay for it themselves.
It is a vulgar exercise considering the deprivations many are experiencing at home.
“and some even magnificently.”
Dare you to name one!!! I DOUBLE DARE you ..Name us one president that has served us well or magnificently!
Parasite me hole. He’s one of the few respectable politicians left in this country. I’m happy to have him as our president. Stop whining, you whingebag.
No austerity for El Presidente, the party goes on and on for the golden circle. These guys are oblivious to the poverty affecting tens of thousands of Irish people. They take medical cards and telephones from the elderly and this silly old Labour Party leech swans off on a 12 day holiday. Bet he won’t have to spend any of his €250,000 salary either.
Hear, hear!
Have to say i agree,its obscene for the head of state of a bankrupt country to go swanning off on a ten day meet and greet holliday to south America,the local Irish embassy could do a similar job at a fraction of the cost.
Why have we a president in this country, just an excuse to waste at least half a million a year on salary , expenses staff etc and then like the two Mary’s a massive pension and for what ? ???Wanton waste , money should be going to help the elderly or special needs children retain their medical cards !
Look if we couldn’t pass a referendum to get rid if the seanad, then it is unlikely we would pass a referendum to get rid of president
Hear hear again, the money it costs to send all them spongers away for what ????? Jobs me arse
He does us proud aboard
will RTE be covering the trip?
no doubt we will be getting fawning updates, on the daily news.
after all, – they are they ones that got him elected as President
If he does his hair up in a bun we will see what he is really at.
Long live the San Patricios!!
Yeah support traitors to the country that they signed alliegence to and then deserted…Sounds very Irish alright.
Total waste of money.
Mexico is in north america
Ah, but why
Mexico is in Central America!
nope, its in north america
Ok, you’re right. Mexico is in North America geographically. But Central America is a political/cultural region. It’s also where Mexico is. what you’re saying is the equivalent of ‘Iraq is not in the Middle East, it’s in Asia.’
Nafta (North American free trade agreement) puts Mexico in North America.
Iraq is clearly in the Middle East. Go find yourself a map!!!
Mexico is north America. Not central America. Ask a Mexican
Will they never learn?
Is he gone via the government jet? If not, is he flying first or business class? How many is there in his entourage? Where is he staying? In the Irish embassies or in 5 star hotels? Does the purpose outweigh the cost? What is the cost financially? What benefit will the trip bring to Ireland? I need answers people!!! lol
Declan
This isn’t a Government Information Bureau. Until you discover the true purpose of the Journal maybe you should stop posting.
Poor little dickie. Rodgers
@Declan You’re right to ask these questions. I lost all respect for Michael D Higgins this week when his Office was given an extra €225 thousand. Im sure the DOF didnt just offer him this money. He must have asked for this increase to his budget. Indeed its an absolute disgrace that his budget was increased as was that of Enda Kennys to the tune of €300 thousand to pay for more staff!
Richies an employee yevonne…..can ya see where the money’s being spent.
*Waves at all the shills and ministers reading*
So long as he doesn’t disguise it in 50 packs of soup.
Its not likely to work.
Drug mule
Why is president yoda over there in the first place..Ireland does not need a president ffs!
A waste of taxpayers money!
He’ll be going loco down in Acapulco if he stays too long.
Enrique pena nieto,this article spelt the name wrong for our Mexican friends
Who gives a shit.
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