Budget 2027 announces a higher Rent Tax Credit cap, but that does not mean a tenant can claim the new amount for rent paid in 2026. The announced individual maximum is €1,150 for 2027 and 2028, with €2,300 for jointly assessed couples. Revenue’s current overview still lists €1,000 and €2,000. Treat the future increase as an announcement until the applicable claim-year guidance confirms it.
Understand the credit before the headline amount
The Rent Tax Credit reduces Income Tax due. It is not a rent subsidy or a guaranteed payment to every tenant, and it does not offset USC or PRSI. The amount you can use depends on qualifying rent, the tenancy conditions and your available Income Tax liability. A maximum cap is not an entitlement to that amount.
Revenue excludes payments for additional services such as utilities, board and laundry from qualifying rent. Separate those charges from the rent figure rather than submitting a single total for all housing costs. A claim may concern a principal private residence or another qualifying arrangement, but the conditions differ and must be checked.
Which amount belongs to which tax year?
- For a 2026 claim, use the current confirmed Revenue rules, not the announced €1,150 cap.
- For 2027 and 2028 planning, identify the €1,150 individual and €2,300 joint caps as announced measures.
- Check the claim-year guidance again when Revenue opens the relevant claim process.
- Do not multiply a personal annual cap because you rented more than one property.
The maximum increase is €150 for an individual who can use the full announced credit, or €300 for a jointly assessed couple at the joint maximum. Someone with insufficient Income Tax liability may benefit by less, or not at all.
Prepare your claim records
- Keep the amounts and dates of rent payments and the address of the property.
- Record the tenancy and landlord details requested by Revenue, including registration details where required.
- Check qualifying use of the property, relationships with the landlord, and any conditions for a child attending an approved course.
- Retain supporting records and review every declaration before submitting a claim.
PAYE taxpayers use Revenue’s myAccount service for supported claims. Follow the current How to claim instructions for an in-year claim or the relevant Income Tax Return. Other taxpayers should follow their applicable Revenue return process. This guide does not provide a live filing service or submit information to Revenue.
Use the calculator without overstating its scope
The embedded calculator estimates supported current-year rules. It does not implement the announced €1,150 individual 2027 cap. You can use it to understand the interaction between qualifying rent, Income Tax and the confirmed cap, but its result is not confirmation of a future claim.
Before you submit
Recheck the current Revenue guidance for your tax year and circumstances. Do not claim a higher amount simply because it appears in a Budget headline or this guide’s planning discussion. An estimate is not tax advice; ask Revenue or a qualified accountant when eligibility or your tax liability is uncertain.