Tax relief for tenants
Information
If you live in private rented accommodation in Ireland and pay income tax, you may be eligible for tax relief on part of your rent. Relief is also allowable on rent paid for premises outside the State. The relief is being phased out and 2017 will be its last year.
You are only able to claim this relief if you were already renting at 7 December 2010. If you were not renting on that date and you subsequently entered into a rental agreement, you will not be able to claim tax relief on your rent. However, if you were renting at 7 December 2010 you will continue to qualify for this relief even if you enter a new rental agreement after that date.
Rules
In order to claim tax relief, you must be paying rent for private rented accommodation which is used as your sole or main residence. This includes accommodation such as a bedsit, flat, apartment or house.You cannot claim tax relief for rent paid to a local authority or a State agency, or for rent paid under a lease agreement for 50 years or more.
Landlords or agents living in Ireland
If your landlord or agent is resident in Ireland, a receipt for rent you have paid must be provided if and when it is requested by the Revenue Commissioners. This rule applies regardless of whether you pay your rent directly to the landlord or to an agent on behalf of the landlord. Each receipt must show the following:
- Landlord's name, PPS Number and address
- Amount of rent that you have paid
- Period of time covered by the receipt.
You should keep your receipts for at least 6 years in case the Revenue Commissioners ask to see them.
Landlords living outside Ireland
If your landlord lives outside Ireland and you pay rent directly to them or to their bank account located in Ireland or abroad, you must deduct tax at the standard rate (20% in 2011 and 2012) from the gross amount that you pay. This deduction is not your tax relief - it is tax payable to Revenue from your landlord's income.
For example, your landlord lives in Germany and you pay him/her gross rent per month of €1,000. First, work out the amount of tax to be deducted (€1,000 x 20% = €200). Now deduct the tax due from the gross rent you pay (€1,000 - €200 = €800). The net rent to be paid to your landlord is €800 per month. The amount due to Revenue is the €200 per month that you deducted from the gross rent of €1,000.
Accounting to Revenue for tax deducted from rent
You must account to Revenue for the tax you deduct from the gross rent. If you fail to deduct tax from rent you pay to a landlord living outside Ireland, this will mean that you (and not the landlord) will be liable for any tax which should have been deducted.
If you pay tax under PAYE, you can account for it by reducing your tax credits and Standard Rate Cut-Off Point. You can notify your local Revenue Office and ask them to arrange this. Alternatively, you can make a tax return - Form 12 (pdf) and pay the retained amount to Revenue.
If you pay tax under self-assessment, you should include the details of your rent on your annual return - Form 11 (pdf). A notice of assessment will then issue to you, showing the reduced credit.
At the end of the year you must give your landlord a completed Certificate of Income Tax Deducted - Form R185 (pdf).
Rates
Tax relief on private rented accommodation is calculated at the standard rate of 20% whether your landlord lives in Ireland or abroad. The maximum amounts of relief on rent are as follows:
| Personal circumstances | Tax year 2011 | Tax year 2012 |
| Single and aged under 55 years | €1,600 | €1,200 |
| Single and aged over 55 years | €3,200 | €2,400 |
| Married widowed/in a civil partnership/surviving civil partner and aged under 55 years | €3,200 | €2,400 |
| Married widowed/in a civil partnership/surviving civil partner and aged over 55 years | €6,400 | €4,800 |
To work out what this is worth to you each year after tax, you multiply the tax allowance amounts above by 20%. So, for those aged:
- Under 55: the maximum amount that a single person under 55 can get is €240 (€1,200 x 20%) for rent paid in 2012. The maximum amount that you can get if you are married, widowed, in a civil partnership or a surviving civil partner is €480 (€2,400 x 20%) for rent paid in 2012.
- Over 55: the maximum amount that a single person over 55 can get is €480 (€2,400 x 20%) for rent paid in 2012. The maximum amount that you can get if you are married, widowed, in a civil partnership or a surviving civil partner is €960 (€4,800 x 20%) for rent paid in 2012.
As mentioned above, rent relief is being phased out. This table shows the amount of rent that will attract tax relief in each year up to 2017.
| Tax year | Single, under 55 | Single, over 55 | Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, under 55 | Widowed or a Surviving Civil Partner / Married or in a Civil Partnership, over 55 |
| 2010 | 2,000 | 4,000 | 4,000 | 8,000 |
| 2011 | 1,600 | 3,200 | 3,200 | 6,400 |
| 2012 | 1,200 | 2,400 | 2,400 | 4,800 |
| 2013 | 1,000 | 2,000 | 2,000 | 3,600 |
| 2014 | 800 | 1,600 | 1,600 | 3,200 |
| 2015 | 600 | 1,200 | 1,200 | 2,400 |
| 2016 | 400 | 800 | 800 | 1,600 |
| 2017 | 200 | 400 | 400 | 800 |
| 2018 | 0 | 0 | 0 | 0 |
How to apply
Whether your landlord lives in Ireland or abroad, to claim rent relief you can complete Form Rent 1 (pdf) and send it to your tax office. (Copies of the form are also available from your local tax office.) If you have any difficulty completing the form or supplying any of the information requested, staff in the tax office will be happy to help you.
Alternatively, you can claim the tax relief using Revenue's PAYE anytime service.
Where to apply
Contact information for tax offices is available here and in all telephone directories.
Related Documents
- How your income tax is calculated
Tax on income you earn from employment in Ireland is deducted directly from your salary (pay). Find out how this tax is calculated. - Introduction to income tax credits and reliefs
Tax reliefs reduce the amount of tax that you have to pay. Find out about the different types of income tax relief that apply to your circumstances. - Older people's tax credits and reliefs
Special taxation arrangements apply to people aged 65 and over. Find out more.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.