Catherine Ardagh (Dublin South Central, Fianna Fail)
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102. To ask the Minister for Finance the number of taxpayer units that have made rent tax credit claims since the tax credit's inception; and if he will make a statement on the matter. [39412/25]

Shay Brennan (Dublin Rathdown, Fianna Fail)
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Could the Minister confirm the number of taxpayer units that have made claims for the rent tax credit since its introduction in December 2022? With budget 2025 further increasing the credit to €1,000 for individuals and €2,000 for jointly assessed couples, will the Minister comment on the scale of uptake and effectiveness of this credit in supporting private renters and make a statement on how it fits within the Government's broader strategy to assist those struggling with high rents?

Paschal Donohoe (Dublin Central, Fine Gael)
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The rent tax credit was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to the end of 2025. The value of the credit was €500 for a single person and €1,000 for a jointly assessed couple. For 2024 and 2025, the value of the credit increased to €1,000 for a single person and €2,000 for a jointly assessed couple. The rent tax credit has played a valuable role in providing financial support to renters right across the country. I am informed by Revenue that 313,980 taxpayers, both PAYE and self-assessed taxpayers, claimed the rent tax credit for 2022. Of these, 273,160 taxpayer units benefited from the rent tax credit in that year.

The extent to which a claimant benefits from a tax credit, through a reduced liability or receipt of a refund for overpayment of a tax liability, is determined by their gross tax liability and use of other tax credits and reliefs. Taxpayers who claim the rent tax credit may not benefit from this credit as a result of other reliefs, deductions and tax credits already reducing their net tax liability to nil. To 1 July of this year, the number of claims made by taxpayer units in respect of the rent tax credit are as follows: 307,270 for 2023, 289,700 for 2024 and 73,600 for 2025.

Shay Brennan (Dublin Rathdown, Fianna Fail)
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We are all acutely aware of the persistent challenges facing renters. The rent tax credit introduced in budget 2023 at €500 has been a tangible intervention for people grappling with higher rental costs. This credit was subsequently increased to €750 and reached €1,000 for individuals and €2,000 for couples in budget 2025. Since its inception three years ago, it has offered meaningful assistance to many, easing pressure from rising rents and providing relief for thousands of families and individuals. Recognising the programme for Government's commitment to progressively increasing the rent tax credit, will the Minister outline whether additional enhancements are being considered as part of the upcoming budget? Given cost-of-living issues, does he envisage any further increases to the credit or additional targeted measures aimed at supporting renters in the most acute difficulty?

Paschal Donohoe (Dublin Central, Fine Gael)
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I am very much aware of the value and role that this rent tax credit plays in helping with the cost of living. That is why over a number of budgets I, along with the Minister, Deputy Chambers, and the former Minister, Michael McGrath, have made changes to the value of it. The decisions that will be made on budget day are being carefully considered at the moment. As I said to the Deputy earlier in response to his earlier question, it would not be appropriate for me to indicate now what we plan to do. We have to be very careful because we are making these decisions against the backdrop of an economic environment that is very uncertain. We have to ensure that any decisions we make are ones we will be able to afford in the years to come. I am not suggesting that any one measure on its own might be something we might not be able to sustain into the future, but all of them put together is where the risk arises.

Shay Brennan (Dublin Rathdown, Fianna Fail)
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The Minister will probably appreciate that most of the questions he is asked between now and October will be to seek his plans for the upcoming budget. Could he provide an update in the meantime on the overall awareness and uptake of the rent tax credit since its launch? My understanding is that the Department of Finance estimates that around 400,000 renters are eligible to claim this relief. In its initial year, some 250,000 to 270,000 taxpayer units made a claim for the credit. By early 2024, claims across the first two years, 2022 and 2023, exceeded 320,000 taxpayer units, with, I believe, almost €120 million paid out in respect of the year 2022 alone. Given the substantial increase in the value of the credit since then, has there been a commensurate rise in uptake rates and awareness among renters? What measures are being taken to ensure that all those eligible are availing of the support, particularly as the rental market remains under strain?

Paschal Donohoe (Dublin Central, Fine Gael)
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The figures I shared with the Deputy earlier show overall that this rent tax credit is being reasonably broadly used. I remember when the tax credit was brought in that in the early period in which it was being made available, I was concerned that the drawdown and use of it was not as broad as I would have hoped. Towards the end of the tax year, however, we saw more taxpayers who were eligible for it register.

As regards the communication and drawing attention to it, the advertising the State does directly and then the advice that individual taxpayers can receive are where it becomes so valuable. This is a rent tax credit that can play a valuable role in helping taxpayers deal with the high cost of rent. As I said, we will consider that and other tax credits as part of the preparation for budget 2026.

Mattie McGrath (Tipperary South, Independent)
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Maidir le Ceist Uimh. 103, níl an Teachta Cahill anseo - tá sé as láthair - so we will move on to Ceist Uimh. 104, in ainm Cian O'Callaghan.