Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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356.To ask the Minister for Finance the way State pensioners can apply for the rent tax credit, as announced in budget 2024; and if he will make a statement on the matter. [32154/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

Claims for the Rent Tax Credit in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. Self-assessed taxpayers can submit their claim for the credit in their annual tax returns also.

For claims relating to 2024, PAYE taxpayers have the option of claiming the rent tax credit due to them either throughout the year as rent is incurred or at the end of the year through their Income Tax return.

It is a general principle that in order to avail of income tax reliefs a person must pay income tax. The amount of Rent Tax Credit that can claimed will depend on the amount of rent paid and the amount of income tax paid by the claimant.

A State pensioner who pays rent in Ireland will be entitled to claim the Rent Tax Credit if they pay income tax in Ireland and satisfy the conditions which must be met in order for a claimant to qualify for the credit.

In the case of a single person, the amount of tax that must be paid to fully avail of the Rent Tax Credit is €3,900 in 2022, €4,050 in 2023 and €4,500 in 2024. Where the amount of tax paid is less than these amounts, the maximum relief is, in effect, limited by the amount of tax paid; the Rent Tax Credit is a non-refundable tax credit.

Full details of how to claim the tax credit and the conditions that apply are set out on the Revenue website.