Home Carer Tax Credit
If you are married or in a civil partnership and you care for a dependent person, you can apply for the Home Carer Tax Credit. You must be jointly assessed for tax as a couple.
When you get a tax credit, it reduces the tax you pay by the amount of the credit.
Read more about how your tax is calculated.
The full amount of the Home Carer Tax Credit can be claimed when:
- A married couple or civil partners are jointly assessed for tax
- One spouse or civil partner cares for one or more dependent people (see below)
- The home carer’s own income is under €7,200. A reduced tax credit applies if their income is between €7,200 and €10,600 (€10,400 in 2022).
Carer’s Allowance or Carer's Benefit are not taken into account when determining the home carer’s income but they are taxable sources of income. This means that if you are claiming Carer's Allowance or Carer's Benefit, it will make up part of your jointly assessed income.
Who is a dependent person?
A dependent person is a:
- Child for whom Child Benefit is payable
- Person aged 65 or over
- Person with a disability who requires care
A dependent person you are caring for cannot be a spouse or civil partner. They can however, be a relative by marriage, or someone for whom you act as a legal guardian.
Does the person being cared for have to live in our home?
If you care for a person who is not a relative, and not a relative of your spouse or civil partner, then they do have to live in your home.
If the dependent person is a relative, they can be cared for outside your home. However, if the person is not living with you they must live either
- Next door in a neighbouring residence
- On the same property
- Within 2 kilometres of your home
There must be a direct communication link between you (for example, telephone or alarm system).
The Home Carer Tax Credit is €1,700 (€1,600 in 2022).
If the home carer has an income of up to €7,200 in their own right for the tax year, the full tax credit may be claimed.
Reduced tax credit
If the home carer's income exceeds €7,200, the amount of their income over €7,200 is halved and the tax credit is reduced by that amount. The following table gives examples of how the tax credit is calculated for different levels of income in 2023.
If the home carer's income is €10,600 or more, then you cannot claim the tax credit.
|Income of Home Carer, €||Tax credit, €||Reduction in tax credit, €|
|7,200||1,700||No reduction - the full tax credit is due|
|7,450||1,575||7,450 - 7,200 = 250 ÷ 2 = 125|
|7,700||1,450||7,700 - 7,200 = 500 ÷ 2 = 250|
|7,950||1,325||7,950 - 7,200 = 750 ÷ 2 = 375|
|8,200||1,200||8,200 - 7,200 = 1,000 ÷ 2 = 500|
|8,450||1,075||8,450 - 7,200 = 1,250 ÷ 2 = 625|
|8,700||950||8,700 - 7,200 = 1,500 ÷ 2 = 750|
|8,950||825||8,950 - 7,200 = 1,750 ÷ 2 = 875|
|9,200||700||9,200 - 7,200 = 2,000 ÷ 2 = 1,000|
|9,450||575||9,450 - 7,200 = 2,250 ÷ 2 = 1,125|
|9,700||450||9,700 - 7,200 = 2,500 ÷ 2 = 1,250|
|9,950||325||9,950 – 7,200 = 2,750 ÷ 2 = 1,375|
|10,200||200||10,200 - 7,200 = 3,000 ÷ 2 = 1,500|
|10,400||100||10,400 - 7,200 = 3,200 ÷ 2 = 1,600|
|10,600||Nil||10,600 – 7,200 = 3,400 ÷ 2 = 1,700|
You cannot claim the increased Standard Rate Cut-Off Point for dual income couples and the Home Carer Tax Credit. Your Revenue office can help you decide which is better for you.