The Rent Tax Credit is to rise to €750 next year, Finance Minister Michael McGrath has told the Dáil as he sets out the details of Budget 2024.  

The tax credit was introduced last year to help renters struggling with the rising cost of housing. 

Last year, it was set at €500 - now it is to rise by 50% to €750. 

Minister McGrath also announced a significant increase in the Local Property Tax on vacant homes. 

“It is appropriate that every available lever is deployed to incentivise the use of existing housing stock across the country,” he said. 

“This includes measures to deter vacancy - alongside supportive measures, such as grants. 

“For this reason, I am increasing the vacant homes tax, introduced last year, to five times the property’s existing basic local property tax rate. 

“This increase will take effect from the next chargeable period commencing in November.” 

Landlords

Minister McGrath also announced rental income received by certain small landlords would be disregarded at the standard rate of income tax. 

“Subject to certain conditions being met, rental income of 3,000 for the year 2024, 4,000 for the year 2025 and 5,000 for the year 2026 and ‘27 will be disregarded at the standard rate of income tax,” he said.  

He added that to avail of this income tax break, the property “must remain in the rental market for the full four years - otherwise the full amount of the relief will be clawed back.”

Main image: Paschal Donohoe and Michael McGrath.