Rent tax credit will be increased, Taoiseach says

The renters’ tax credit will be increased in the Budget, the Taoiseach has said.

The credit was introduced in 2022 and has since been extended and increased up to a yearly maximum of 1,000 euro for an individual or 2,000 euro for a couple who are jointly assessed for tax.

It was reported in the Irish Examiner that Housing Minister James Browne is seeking to increase the credit by 300 euro.

Asked if he supported an increase of that scale, the Taoiseach said the credit has been “positive”, adding: “We will be increasing it in the forthcoming budget.”

Micheál Martin told reporters before Cabinet: “The only issue I’d have is some people are not availing of it and that’s an issue that we need to really examine.”

Tánaiste and Finance Minister Simon Harris said there was a “need to help people with the cost of rent”, adding he was “positively disposed” to increasing the credit.

Specifically asked if it would be increased by 300 euro, Mr Harris said: “It’s going to be a long 15 days (until the Budget) if we’re going to go through every specific line of the Budget and every specific amount inside the Budget.”

He added: “There will be tax measures in that Budget. The bulk of the tax measures will go on a personal income tax.

“There’s a tax package of around 1.5 billion. We all know any personal income tax package comes in at around 1.2-ish billion.

“So, there’s a little bit left to do other things. The programme for government is clear – that’s what unites everybody in Government – that the renters’ tax credit is an area that should be increased if possible, and therefore we will look favourably upon that.

“The level at which we do it is a matter of for Budget day.”