IT1 - Tax Credits, Reliefs and Rates for the Tax Years 2012 and 2013

Personal Tax Credits

The following chart gives details of the main personal tax credits for the tax years 2012 and 2013

Tax credits for the years 2012 and 2013
Personal Circumstances 2012 2013
Single Person €1,650 €1,650
Married Person or Civil Partner €3,300 €3,300
Widowed Person or Surviving Civil Partner - qualifying for One Parent Family Tax Credit €1,650 €1,650
Widowed Person or Surviving Civil Partner without qualifying children €2,190 €2,190
Widowed Person or Surviving Civil Partner in year of bereavement €3,300 €3,300
One-Parent Family Tax Credit (with qualifying child) €1,650 €1,650
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2012 --- €3,600
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2011 €3,600 €3,150
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2010 €3,150 €2,700
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2009 €2,700 €2,250
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2008 €2,250 €1,800
Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2007 €1,800 ---
Home Carer Tax Credit (max.) €810 €810
PAYE Tax Credit €1,650 €1,650
Age Tax Credit if Single, Widowed or Surviving Civil Partner €245 €245
Age Tax Credit if Married or in a Civil Partnership €490 €490
Incapacitated Child Tax Credit €3,300 €3,300
Dependent Relative Tax Credit ( - See note 1) €70 €70
Blind Person's Tax Credit - Single Person* €1,650* €1,650*
Blind Person's Tax Credit - One Spouse or Civil Partner Blind* €1,650* €1,650*
Blind Person's Tax Credit - Both Spouses or Civil Partners Blind* €3,300* €3,300*
Incapacitated Person - Relief for Employing a Carer** €50,000**max €50,000**max

* Relief in respect of the cost of maintaining a guide dog (max €825) may be claimed under the heading of Health Expenses.

** Relief for Employing a Carer (2012 and 2013) is allowable at the individual's highest rate of tax, i.e. 20% or 41%.

Note 1- In the case of Dependent Relative Tax Credit, if the relative's income exceeds the relevant limit of €13,837 in the years 2012 and 2013 no tax credit is due.

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Exemption Limits

Personal Circumstances 2012 2013
Single, Widowed or a Surviving Civil Partner 65 years of age or over €18,000 €18,000
Married or in a Civil Partnership 65 years of age or over €36,000 €36,000
Single, Widowed, a Surviving Civil Partner, Married or in a Civil Partnership 65 years of age or over
- additional for 1st and 2nd qualifying child		 €575 €575
Single, Widowed, a Surviving Civil Partner, Married or in a Civil Partnership 65 years of age or over
- additional for each subsequent qualifying child 		€830 €830
Marginal Relief Tax Rate* 40%* 40%*

*The Marginal Relief Tax Rate only applies to persons 65 years of age or over.

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Tax Rates and Tax Bands

Tax rates and bands applicable to your personal circumstance in tax year 2012 and tax year 2013
Personal Circumstances 2012 2013
Single, Widowed or a Surviving Civil Partner without qualifying children €32,800 @ 20%, Balance @ 41% €32,800 @ 20%, Balance @ 41%
Single, Widowed or a Surviving Civil Partner qualifying for One Parent Family Tax Credit €36,800 @ 20%, Balance @ 41% €36,800 @ 20%, Balance @ 41%
Married or in a Civil Partnership - one Spouse or Civil Partner with income €41,800 @ 20%, Balance @ 41% €41,800 @ 20%, Balance @ 41%
Married or in a Civil Partnership - both Spouses or Civil Partners with income €41,800 @ 20% (with an increase of €23,800 max), Balance @ 41% €41,800 @ 20% (with an increase of €23,800 max), Balance @ 41%

Note: The increase in the standard rate tax band is restricted to the lower of €23,800 in years 2012 and in 2013 or the amount of the income of the Spouse or Civil Partner with the lower income. The increase is not transferable between Spouses or Civil Partners.

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Rent-a-Room Relief

Where an individual lets a room (or rooms) in his or her sole or main residence as residential accommodation, the income may be exempt from income tax where the aggregate of the gross rents and any sums for meals or other services supplied in connection with the letting is below a certain threshold (€10,000 for the tax year 2012 & 2013).

The exemption does not affect any entitlement to mortgage interest relief or to Capital Gains Tax exemption on the disposal of the residence.

The exemption is not due where the payments are to a parent from his or her child. Neither is it due where the payments are to an individual who is an office holder or an employee of the person making the payments or, of a person who is connected with the person making the payments or to a person connected with the office holder or employee.

For more information see Leaflet IT 70 - A Revenue Guide to Rental Income.

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Childcare Services

Childcare Services Relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000 in the years 2012 and 2013 the income is exempt from tax. The childcare service must be provided in the carer's home, not the children's home and no more than three children may be cared for at any time.

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Rent Relief for Private Rented Accommodation

Relief is due at the standard rate of tax (20%) in the tax years 2012 and 2013 subject to the following upper limits:
Personal Circumstances 2012 2013
Single under 55 (max.) €1,200 €1,000
Single over 55 (max.) €2,400 €2,000
Widowed, a Surviving Civil Partner, Married or in a Civil Partnership under (max.) €2,400 €2,000
Widowed, a Surviving Civil Partner, Married or in a Civil Partnership over (max.) €4,800 €4,000

Relief can be claimed by completing pdfForm Rent 1 - Claim for Rent Relief on Private Rented Accommodation (PDF, 266KB)

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Tax Relief for Loan Interest (Secured and Unsecured)

Tax Relief at Source (TRS) on Secured loans

From 1 January 2002, tax relief for home mortgage interest is no longer given through the tax system but is instead granted at source by your mortgage lender on behalf of Revenue. Tax relief is granted on the amount of the interest paid, subject to the overall limits.

For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief.

Your mortgage repayment is reduced by the amount of the tax relief. Your lender in turn claims this amount from Revenue. Any future adjustments in the tax relief (for example, arising from changes in interest rates) will be made automatically by the lender on behalf of Revenue. It is not necessary to claim mortgage interest relief in the annual tax return, and it no longer appears on your Tax Credit Certificate. Borrowers who are taking out new mortgages or who wish to claim for relief due for previous years must apply online at www.revenue.ie.

Unsecured Home Loans

Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed from Revenue at the end of the tax year. If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.

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Tax Relief at Source - Mortgage Interest Relief

Interest paid on qualifying home loans taken out after 1 January 2004 and on or before 31 December 2012 will (subject to the exceptions below) qualify for tax relief up to the end of 2017 at the following general rates and thresholds -

First time buyers

The tax relief on interest paid on qualifying home loans is 25% for years 1 and 2; 22.5% for years 3, 4 & 5 and 20% for years 6 and 7. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €20,000 for individuals who are married, in a civil partnership, widowed or surviving civil partner and €10,000 for single individuals.

After year 7, the rates and thresholds for relief are as for non-first time buyers.

Non-first time buyers

The tax relief on interest paid on qualifying home loans is 15%. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €6,000 for individuals who are married, widowed or surviving civil partner and €3,000 for single individuals.

Exception 1 (30% rate of relief)

However, notwithstanding the rates of tax relief mentioned above, for individuals who purchased their first principal private residence (or second principal private residence but only where the first principal private residence was purchased on or after 1 January 2004), on or after 1 January 2004 and on or before 31 December 2008, the rate of tax relief on the interest paid on the loan to purchase that property will, for the tax years 2012 to 2017 inclusive, be 30%, subject to appropriate first time buyers and non-first time buyers threshold.

Exception 2 (certain loans taken out in 2012 and 2013)

Mortgage interest relief is available, in certain circumstances, for the tax years 2013 to 2017, in respect of:

  • Interest paid on a loan taken out in 2013 to construct a home on a site, but only where such site was bought by way of a loan taken out in 2012, and
  • Interest paid on a loan to repair, develop or improve a home but only where loan approval was in place in 2012 and part of the loan was used in 2012 and the balance used in 2013 on such repair, development or improvement.

In both instances above, in order to qualify for relief, any necessary planning permission must have been in place on or before 31 December 2012.

Loans taken out prior to 1 January 2004

Loans taken out prior to 1 January 2004 are no longer eligible for mortgage interest relief. However, top up loans/equity release loans taken out since 1 January 2004 on these pre-2004 loans may be eligible for mortgage interest relief, provided they adhere to eligibility criteria as listed above.

Note: The relief will be abolished completely by the end of 2017.

For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief.

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Medical Insurance Premiums

Tax Relief at Source (TRS)

Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS). Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%).

Employees whose medical insurance premiums are paid on their behalf, by their employer, as a Benefit-in-Kind, will not have been allowed tax relief at source. To claim the relief due it will be necessary to notify your Revenue Office with the relevant details or by completing an annual tax return.

The Age-Related Tax Credit (ARTC) applies to medical insurance premiums paid to an authorised insurer. The amount of the credit depends on the age of the insured person on the date the contract was entered into or renewed. This credit will no longer apply in respect of policies entered into or renewed with effect from 1 January 2013.

For more information see Leaflet: IT 5 - Medical Insurance Relief

Revenue Job Assist

Additional tax relief at the individual’s highest rate of tax, i.e. 20% or 41%, is available for people who have been unemployed for one year or more and who take up a qualifying job. For more information see Leaflet IT 58 - Job Assist Information for Employees.

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Revenue Approved Permanent Health Benefit Schemes

Where an employer deducts the contributions from gross pay the tax relief is given at source. Therefore no further action is necessary to claim relief.

Where an employer does not deduct the contributions from gross pay relief can be claimed, by notifying your Revenue office of the relevant details or by completing your annual tax return.

Home Carer Tax Credit

A tax credit at the standard rate of tax (20%) in the tax years 2012 and 2013 is available for Married Couples or Civil Partners where:

  • One Spouse or Civil Partner (the 'home carer') works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to child benefit from the Department of Social Protection, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.
  • The home carer’s income is not in excess of €5,080. A reduced tax credit applies where the income is between €5,080 and €6,700 in the years 2012 and 2013.

The tax credit is not available to Married Couples or Civil Partners who are taxed as single persons. Neither is the tax credit available to Married Couples or Civil Partners with combined incomes over €41,800 in the tax years 2012 or 2013 and who claim the increased standard rate tax band for dual income couples.

For more information and also to claim the relief due complete the application form in Leaflet IT 66 - Home Carer's Tax Credit and send it to your Revenue office. Alternatively, you can telephone your Revenue LoCall number with details of your claim.

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Health/Medical Expenses Relief

You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.

You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by VHI, Laya Healthcare, Aviva Healthcare, etc., or where a compensation payment is or will be made.

For more information see Leaflet IT 6 - Health / Medical Expenses Relief, Form pdfMED 1 (PDF, 1.14MB) or phone your Regional LoCall number.

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Tuition Fees

Tax relief at the standard rate of tax (20%) is available for tuition fees which includes the Student Contribution but does not include examination fees, registration fees and administration fees. The maximum limit on such qualifying fees for the academic years 2012/2013 is €7,000 per individual per course.

The amounts of qualifying tuition fees shown in the table below are disregarded in respect of each claim.

Year Full time -
(Where any one of the students
of whom relief is claimed is a
full-time student)		 Part time -
(Where all the students
in respect of whom relief is claimed are
part-time students)
2011 €2,000 €1,000
2012 €2,250 €1,125
2013 €2,500 €1,250
2014 €2,750 €1,375
2015 €3,000 €1,500

The disregards set out above are in respect of a claim, the subject of which may be one or more students. The general effect of this is that claimants who are claiming for more than one student will get full tax relief on the Student Contribution for 2nd and subsequent children in their claim.

For more information see Leaflet IT 31 - Tax Relief for Tuition Fees.

Tax Relief Available to Systematic Short-time Workers

The exemption from income tax for Jobseeker's Benefit paid to systematic short-time workers has been extended indefinitely.

Top Slicing Relief

From 1 January 2013, Top Slicing Relief will no longer be available for individuals who receive an ex-gratia payment, excluding statutory redundancy, where the amount is €200,000 or more.

PRSI - Employers/Employees/Self Employed

PRSI queries should be directed to Department of Social Protection, Information Service at 1890 662 244, or if self employed at 1890 690 690 or visit: www.welfare.ieExternal link

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Universal Social Charge (USC)

The USC is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.

The Standard Rates and Thresholds of USC are as follows:
2012 Rate 2013 Rate
Income up to €10,036.00 2% Income up to €10,036.00 2%
Income from €10,036.01 to €16,016.00 4% Income from €10,036.01 to €16,016.00 4%
Income above €16,016.00 7% Income above €16,016.00 7%
The Reduced Rates and Thresholds of USC are as follows:
2012 2013
Individual aged 70 years or over. Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less.
Individuals who hold a full medical card (regardless of age). Individuals (aged under 70) who hold a full medical card whose aggregate income for the year is €60,000 or less.
2% - Income up to €10,036.00 2% - Income above €10,036.00
4% - Income above €10,036.00 4% - Income above €10,036.00
The Exempt categories for USC are:
2012 2013
Where an individual's total income for a year does not exceed €10,036 Where an individual's total income for a year does not exceed €10,036
All Dept of Social Protection payments and payments similar in nature to such payments paid by other Government bodies All Dept of Social Protection payments and payments similar in nature to such payments paid by other Government bodies
Income already subjected to DIRT Income already subjected to DIRT

Notes:
'Aggregate' income for USC purposes does not include payments from the Department of Social Protection.

A 'GP only' card is not considered a full medical card for USC purposes.

There is a surcharge of 3% on individuals who have non-PAYE income that exceeds €100,000 in a year.

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Forms and Leaflets

To request any Revenue Form or Leaflet phone LoCall 1890 306 706 (ROI only), +353 1 7023050 (from abroad), visit any Revenue public office or see: Leaflets and Forms.

Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different service providers.

Accessibility

If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at: accessofficer@revenue.ie

PAYE Anytime

The quickest and easiest way to keep your tax up to date is to use PAYE Anytime. PAYE Anytime is a secure internet system that lets you do business with Revenue electronically 365 days a year. You must register first. Registration is quick and easy. See PAYE Anytime for more information.

Further Information

If you are a PAYE customer your tax affairs are dealt with in the Region where you live. For further information phone your Revenue LoCall Service (ROI only) at:

Contact details for Regional offices
Region Area Covered Telephone No.
Border Midlands West Region Cavan, Donegal, Galway, Leitrim, Longford, Louth, Mayo Monaghan, Offaly, Roscommon, Sligo, Westmeath 1890 777 425
Dublin Region Dublin (City and County) 1890 333 425
East & South East Region Carlow, Kildare, Kilkenny, Laois, Meath, Tipperary, Waterford, Wexford, Wicklow 1890 444 425
South West Region Clare, Cork, Kerry, Limerick 1890 222 425

If you are calling from outside the Republic of Ireland phone +353-1-7023011.

If you are taxed under the Self Assessment system you may contact the Revenue office shown on your notice of assessment.

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Legal Disclaimer

This leaflet is intended to describe the subject in general terms. As such, it does not attempt to cover every issue which may arise in relation to the subject. It does not purport to be a legal interpretation of the statutory provisions and consequently, responsibility cannot be accepted for any liability incurred or loss suffered as a result of relying on any matter published herein.

Revenue
May 2013

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