Pearse Doherty (Donegal, Sinn Fein)
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716. To ask the Minister for Finance the full estimated annual cost of the renters tax credit, and the estimated first-and full-year cost of a €250 increase. [43734/25]

Pearse Doherty (Donegal, Sinn Fein)
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751. To ask the Minister for Finance the cost of increasing the rent tax credit, with the credit equivalent to 8.3% of an individual’s annual rent, with a minimum credit of €1,000 and a maximum credit of €2,000, per year, clarifying both the full cost and the net cost if the Government has any funding allocated for rent relief in 2026. [43873/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 716 and 751 together.

I am advised by Revenue that the most recent year for which an annual cost to the exchequer of the Rent Tax Credit (RTC) is available is 2022. The estimated cost is €156.4m as published in Revenue's Cost of Tax Expenditure' publication on the Revenue website at:

Data for 2023 will be available in this publication in the coming weeks.

I am advised by Revenue that the estimated cost to the Exchequer of increasing the RTC, to €1,250 for a singly assessed person/€2,500 for a jointly assessed couple, on a first and full year basis, is approximately €45m and €50m respectively. This cost is based on the current policy arrangements, where the tax credit is allowable at 20% of the rent paid, subject to the maximum credit values as laid out above.

I am further advised that the estimated first and full year cost of increasing the RTC to a maximum of €2,000 for a singly assessed person/€4,000 for a jointly assessed couple, with the credit value being allowable at 8.3% of the taxpayer unit’s annual rent, with a minimum credit of €1,000 for a singly assessed person/€2,000 for a jointly assessed couple applying, is approximately €50m and €55m, respectively.

These costings are provided on a 2025 basis (i.e. the additional cost over the levels of the relief as increased in Budget 2025), and represent the estimated full year costs.

The Rent Tax Credit will expire at the end of 2025. If the measure were to be extended beyond its current end-date, Budget estimates in relation to 2026 and beyond would be based on the latest available data at that time.