Thousands of Irish renters could be set for €500 boost as part of Budget 2026

Thousands of Irish renters could be set to receive an extra €500 in tax credits as part of Budget 2026.

Over the last two years, the rent tax credit has allowed renters to claim amounts worth up to €1,000 annually.

This figure could be set to increase to €1,500 this time around, after Fine Gael pledged to implement the change in their 2024 general election manifesto.

While it is understood that no official decision has been made yet, Minister for Finance Paschal Donohoe recently indicated that the credit will return this year.

Minister Donohoe said: “I am well aware of the importance of the rent tax credit and the really valuable role that it has played in supporting tenants with rising rents.”

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“The rent tax credit is due to come to an end at the end of this year and while no decisions have yet been made on any tax measure, I just emphasise my recognition of the importance of that credit and the role that it plays in supporting tenants.”

If you pay rent, you may qualify for the rent tax credit. This credit reduces the income tax you owe by the amount of the credit.

You can claim the tax credit for rent payments you made in previous years by making an income tax return. You can also claim the tax credit for payments made in 2025 if you are a PAYE taxpayer.

The amount of the credit is 20% of your rent payments in the year, with a current maximum credit of €1,000 for an individual or €2,000 for a couple.