Tánaiste Simon Harris signals possible boost to rent tax credit in upcoming budget

At the close of a Fine Gael think-in, Tánaiste Simon Harris told reporters he is “positively disposed” to increasing the Rent Tax Credit in the forthcoming budget, after the credit was left unchanged last year. The credit now provides €1,000 to single claimants and €2,000 to jointly assessed couples, up from €500 and €1,000 in 2022-23. Harris acknowledged limits on the overall tax package but remained hopeful that a modest uplift could be secured.

In 2024, over 335,000 taxpayers benefited from the credit, while average monthly rents climbed 7.8% year-on-year, reaching €2,176 nationally and €2,828 in Dublin city centre. He also signalled that inheritance tax, as well as Capital Acquisitions Tax and Capital Gains Tax, will be examined, though the primary focus of the €1.5 billion tax package is personal income tax. Harris stressed that progress on these taxes is a longer-term goal for the government.