Tax Credits & Reliefs – Ireland
Tax credits reduce your income tax liability euro-for-euro. Unlike deductions (which reduce taxable income), credits directly reduce the tax you owe. Ireland's tax credit system is generous and can significantly reduce effective tax rates.
Tax Credits & Reliefs
Tax credits reduce your income tax liability euro-for-euro. Unlike deductions (which reduce taxable income), credits directly reduce the tax you owe. Ireland's tax credit system is generous and can significantly reduce effective tax rates.
Universal Tax Credits
Available to all taxpayers - single, widowed, or married/civil partner (each spouse gets €2,000). Automatically applied. No conditions required.
For PAYE employees, pensioners, or those receiving taxable social welfare. Combined with personal credit, single PAYE workers get €4,000 total tax credits, meaning no tax on first ~€20,000 income.
For self-employed individuals who don't qualify for PAYE credit. Matches PAYE credit to treat employed and self-employed equally.
Family & Dependent Credits
For single parents caring for dependent child(ren). Additional standard rate band increase of €4,000 (can earn €48,000 at 20% instead of €44,000).
Where one spouse/partner works in home caring for dependent person(s). Reduced by half of carer's income over €7,200. Available to married couples/civil partners.
If you maintain a dependent relative (incapacitated or over 65). Relative's income must not exceed €18,028 in 2026. Must be unable to maintain themselves.
Per child who is permanently incapacitated. No age limit. Child must be unable to maintain themselves due to mental or physical incapacity.
Age-Related Credits
Additional credit for taxpayers aged 65 or over. Automatically applied once age threshold met and registered with Revenue.
Full income tax exemption if aged 65+ and total income below threshold. Marginal relief available for income slightly over limits.
Housing Credits & Reliefs
Extended to end of 2028. For private renters who don't receive social housing support. Claimed via Form 12 or Form 11. Retrospective claims allowed.
Relief on increased interest paid in 2026 vs. 2022 (base year). Reduced from €1,250 in 2025. Final year of relief. Only on principal private residence. 20% relief rate.
Other Important Credits
€1,950 if one spouse blind, €3,900 if both blind (married/civil partners). Must be registered as blind with local health authority.
Tax relief at 20% on medical expenses not covered by insurance. Must exceed €125/year for non-routine dental. No limit on qualifying expenses.
Tax relief at 20% on undergraduate and postgraduate fees. Fees must exceed €3,000. Applies to approved colleges in Ireland and EU.
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