IT1 - Tax Credits, Reliefs and Rates for the Tax Years 2016 and 2017
- Personal Tax Credits
- Exemption Limits
- Tax Rates and Tax Bands
- Universal Social Charge
- Childcare Services Relief
- Deposit Interest Retention Tax
- Earned Income Tax Credit / Employee Tax Credit
- Fisher Tax Credit
- Health Expenses Relief
- Help to Buy Incentive
- Home Carer Tax Credit
- Home Renovation Incentive
- Medical Insurance Premiums
- Rent-a-Room Relief
- Rent Relief for Private Rented Accommodation
- Revenue Approved Permanent Health Benefit Schemes
- Single Person Child Carer Credit
- Start Your Own Business
- Tax Relief for Loan Interest (Secured and Unsecured)
- TRS - Mortgage Interest Relief
- Tuition Fees
- How do I claim Tax Credits?
- Revenue Claim Forms and Information Leaflets
- Further Information
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The following chart gives details of the main personal tax credits for the tax years 2016 and 2017.
|Married Person or Civil Partner||€3,300||€3,300|
|Widowed Person or Surviving Civil Partner - qualifying for Single Person Child Carer Credit||€1,650||€1,650|
|Widowed Person or Surviving Civil Partner without qualifying child(ren)||€2,190||€2,190|
|Widowed Person or Surviving Civil Partner in year of bereavement||€3,300||€3,300|
|Single Person Child Carer Credit||€1,650||€1,650|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2016||---||€3,600|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2015||€3,600||€3,150|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2014||€3,150||€2,700|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2013||€2,700||€2,250|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2012||€2,250||€1,800|
|Widowed Parent Tax Credit (with qualifying child) - Bereaved in 2011||€1,800||---|
|Home Carer Tax Credit (max.)||€1,000||€1,100|
|Employee Tax Credit (max.)||€1,650||€1,650|
|Earned Income Tax Credit (max.)||€550||€950|
|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 Individual – Relief for employing a carer**||€75,000**max||€75,000**max|
* Relief in respect of the cost of maintaining a guide dog (max €825) is claimed under the heading of Health Expenses.
** Relief for Employing a Carer is allowable at the individual's highest rate of tax, which is 20 per cent or 40 per cent.
Note 1- In the case of the Dependent Relative tax credit, if the relative's income exceeds the relevant limit of €14,060 in 2016 or €14,504 in 2017 no tax credit is due.
|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
|Single, Widowed, a Surviving Civil Partner, Married or in a Civil Partnership 65 years of age or over
- Additional for each subsequent qualifying child
|Marginal Relief Tax Rate*||40%*||40%*|
*The Marginal Relief Tax Rate only applies to persons 65 years of age or over.
|Single, Widowed or a Surviving Civil Partner without qualifying children||€33,800 @ 20%, Balance @ 40%||€33,800 @ 20%, Balance @ 40%|
|Single, Widowed or a Surviving Civil Partner qualifying for Single Person Child Carer Credit||€37,800 @ 20%, Balance @ 40%||€37,800 @ 20%, Balance @ 40%|
|Married or in a Civil Partnership - (one Spouse or Civil Partner with income)||€42,800 @ 20%, Balance @ 40%||€42,800 @ 20%, Balance @ 40%|
|Married or in a Civil Partnership - (both Spouses or Civil Partners with income)||€42,800 @ 20% (with an increase of €24,800 max), Balance @ 40%||€42,800 @ 20% (with an increase of €24,800 max), Balance @ 40%|
Note: The increase in the standard rate tax band is restricted to the lower of €24,800 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.
USC is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions.
|Income up to €12,012.00||1%||Income up to €12,012.00||0.5%|
|Income from €12,012.01 to €18,668.00||3%||Income from €12,012.01 to€18,772.00
|Income from €18,668.01 to €70,044.00||5.5%||Income from €18,772.01 to €70,044.00||5%|
|Income above €70,044.00||8%||Income above €70,044.00||8%|
|Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less.||Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less.|
|Individuals aged under 70 who hold a full medical card whose aggregate income for the year is €60,000 or less.||Individuals aged under 70 who hold a full medical card whose aggregate income for the year is €60,000 or less.|
|Income up to €12,012.00 - 1%||Income up to €12,012.00 - 0.5%|
|Income above €12,012.00 - 3%||Income above €12,012.00 - 2.5%|
|Where an individual's total income for a year does not exceed €13,000.00||Where an individual's total income for a year does not exceed €13,000.00|
|All Department of Social Protection payments and payments similar in nature to such payments paid by other Government bodies||All Department 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|
Note 1. 'Total' income for USC purposes does not include payments from the Department of Social Protection.
Note 2. A 'GP only' card is not considered a full medical card for USC purposes.
There is a surcharge of 3 per cent on individuals who have non-PAYE income that exceeds €100,000 in a year, regardless of age.
For more information, see Universal Social Charge FAQs (PDF, 1.11MB)
Childcare services relief is granted on 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, 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. This income must be declared on your annual tax return in order to qualify for the tax relief.
For further information, see Childcare Services Relief
The DIRT rate in respect of interest paid on all deposit accounts is 41 per cent for 2016 and 39 per cent for 2017.
The rate of exit tax that applies to life assurance policies and investment funds is also 41 per cent
DIRT Relief for First-Time Buyer
Relief from DIRT on interest paid by a first-time buyer on savings, used to purchase a house or an apartment, is allowable. The relief due is capped at 20 per cent of the purchase price and will cease on 31 December 2017. Savings held over a four-year period prior to the purchase will qualify for this relief.
A first-time buyer is an individual who, at the time of purchase, has not either individually or jointly purchased or built on his or her own behalf, a house or apartment.
For further information, see DIRT - First Time Buyers Relief FAQ's.
Earned Income Tax Credit
The Earned Income tax credit (PDF, 79KB) can be claimed by self-employed individuals and proprietary directors who are ineligible for the Employee tax credit. The maximum relief is €550 for 2016 and €950 for 2017. Where an individual’s earned income is below €2,750 in 2016 and €4,750 in 2017, the tax credit is restricted to 20 per cent of the income. For example, total earned income (2016) €2,000 @ 20% = €400 (max.).
Employee Tax Credit
The Employee tax credit can be claimed by an individual in receipt of an income which is taxable under the PAYE system. For example wages, salary, occupational pensions, Department of Social Protection pensions, etc. The maximum amount of the tax credit for 2016 and 2017 is €1,650. Where an individual’s income is less than €8,250, the tax credit is restricted to 20 per cent of the income. For example, total income €7,000 @ 20% = €1,400 (max.).
Note: Where an individual has income that qualifies for the Earned Income tax credit and the Employee tax credit, the combined tax credits cannot exceed €1,650.
From 1 January 2017, a Fisher tax credit can be claimed by an individual who spends a total of eight hours per day for at least 80 days a year fishing at sea in a registered fishing vessel. There is no tax credit due for a fish farmer or if the Seafarer’s allowance was claimed in the same year.
The maximum amount of this credit is €1,270 for 2017.
You may claim tax relief at the standard rate of tax, 20 per cent, with the exception of nursing home expenses for which tax relief is available at your highest rate of tax, (40 per cent) for certain health expenses incurred by you, on your own behalf or on behalf of another person. Most health expenses, with some exceptions, for example routine dental and ophthalmic care, qualify for relief. You cannot claim relief for any expenditure, which has been or will be reimbursed, for example by VHI, Irish Life Health, etc., or where a compensation payment is or will be made.
If you pay income tax under the PAYE system the quickest and easiest way to claim a refund on any health or medical expenses is online using PAYE Services in myAccount.
If you pay income tax under the self-assessment system, the tax relief is claimed by completing the ‘Health Expenses’ section on your annual tax return.
Please see the items of expense eligible for tax relief in our information Leaflet IT6 - A Guide to claiming Health or Medical Expenses Relief.
A tax credit at the standard rate of tax (20 per cent) 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 (who usually live with the couple for the year).
- A dependent person being:
- a child for whom they receive 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.
- The home carer's income is not in excess of €7,200. A reduced tax credit is due where the income is between €7,200 - €9,200 ( in 2016) or between €7,200 - €9,400 (in 2017).
- The tax credit is not due to married couples or civil partners who:
- are taxed as single persons, or
- have combined incomes over €42,800 and claim the increased standard rate tax band for dual income couples.
For more information and details on how to claim this tax credit refer to Leaflet IT 66 - Home Carer's Tax Credit.
The Help to Buy incentive is available to first time buyers who purchase a newly built home or build their own home (self builds) during the period from 19 July 2016 to 31 December 2019. The tax relief is calculated on 5 per cent of the purchase price of a new home / self-build, valued up to €400,000. Therefore, the maximum relief available is €20,000 (€400,000 @ 5% = €20,000) subject to the following limits:
- From 1 January 2017 no relief will be available for new purchases / self-builds valued over €500,000.
- Between 19 July 2016 and 31 December 2016, no relief will be available for new purchases / self-builds valued over €600,000
Before you apply, all first-time buyers must:
- be registered for myAccount (PAYE) or ROS (self-assessed), and
- be fully tax compliant in respect of the four years immediately prior to the claim.
The Home Renovation Incentive (HRI) provides tax credit for property owners (owner-occupiers and landlords) for qualifying expenditure incurred on repair, renovation or improvement work carried out on a property.
Homeowners are entitled to claim the tax credit from 2015 and landlords from 2016. The HRI tax credit is payable over two years, starting the year after the work is carried out and paid for.
- Qualifying works must be carried out by homeowners (owner-occupiers) on or after 25 October 2013 and on or before 31 December 2018. Payments made by homeowners (owner-occupiers) for qualifying works carried out between 25 October 2013 and 31 December 2013 will be treated for tax credit purposes as if they were paid during 2014;
- Qualifying works must be carried out by landlords on or after 15 October 2014 and on or before 31 December 2018. Payments made by landlords for qualifying works on rented properties carried out between 15 October 2014 and 31 December 2014 will be treated for tax credit purposes as if they were paid during 2015;
- Qualifying works must be carried out by local authority tenants on or after 1 January 2017 and on or before 31 December 2018;
- If planning permission is required and is in place by 31 December 2019, then payments made in respect of qualifying work carried out between 1 January 2019 and 31 March 2019 will qualify under the incentive;
- Qualifying works must cost a minimum of €5,000 (including VAT at 13.5 per cent). The €5,000 can be made up of a number of payments to different qualifying contractors;
- There is no upper limit on the cost of the works but the maximum amount on which relief can be claimed is €30,000 (before VAT);The tax credit will be 13.5 per cent of the cost of the works (before VAT), subject to the minimum and maximum amounts. The minimum tax credit is €595 and the maximum tax credit is €4,050. It will be included on your tax credit certificate or income tax notice of assessment acknowledgement letter and will be given over a two year period following the year in which payment is made for the qualifying work;
- Homeowners and landlords must be LPT and Household Charge compliant in order to qualify, but this is not a requirement for local authority tenants. Building contractors must be VAT registered and tax compliant in order to carry out work;
- Your rental property must be or will be within 6 months of the completion of the works, occupied by a tenant and registered with the Residential Tenancies Board.
For further information, see Home Renovation Incentive (HRI) scheme.
The amount of tax relief due in respect of medical insurance policies entered into or renewed on or after 16 October 2013, is restricted to:
- the premium paid up to a maximum of €1,000 per adult covered by a policy
- the premium paid up to a maximum of €500 per child covered by a policy.
For policies renewed or entered into on or after 1 May 2015, the full adult maximum amount of €1,000, or the relevant premium where this is lower, applies for all individuals aged 21 and over, regardless of whether they are availing of a child premium.
Tax relief is granted at 20 per cent on the amount eligible for tax relief
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.
For more information, see Leaflet IT 5 - Medical Insurance Relief
PRSI queries should be directed to the Department of Social Protection Information Service, Tel - 1890 662 244, or 1890 690 690 if self-employed.
For PRSI Contribution rates see PRSI Contribution Rates ＆ User Guide (SW14)
Where an individual lets a room (or rooms) in their sole or main residence as residential accommodation, and the gross rents and any amounts received for meals or other services supplied in connection with the letting is below €12,000 for 2016 and €14,000 for 2017. The rental income received must be declared on your annual tax return in order to qualify for the exemption.
The exemption does not affect any entitlement to mortgage interest relief or to capital gains tax exemption on the disposal of the residence.
No exemption is due where the payments are to a parent from their 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.
|Single, aged under 55 (max.)||€400||€200|
|Single, aged 55 and over (max.)||€800||€400|
|Widowed, a Surviving Civil Partner, Married or in a Civil Partnership, aged under 55 (max.)||€800||€400|
|Widowed, a Surviving Civil Partner, Married or in a Civil Partnership, aged 55 and over (max.)||€1,600||€800|
Note: Rent Relief only applies to individuals who were renting a property on 7 December 2010. No credit is due to individuals who began renting after that date.
Relief can be claimed by completing Form Rent 1 - Claim for Rent Relief on Private Rented Accommodation (PDF, 213KB).
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, contact your Revenue office to claim the relief, or complete an annual tax return.
For more information, see Permanent Health Insurance.
To qualify for this tax credit the primary claimant must be a single parent who has a qualifying child residing with him or her, or a person who has custody of and maintains a qualifying child who is living with him or her for the whole or greater part of the year of assessment (that is more than six months).
The credit also due in respect of a permanently incapacitated child where the incapacity occurred before age 21, or if older, while the child was in full-time instruction.
Note: Full-time instruction does not include post graduate and doctorate programmes where the student is primarily involved in self-managed research and learning.
In all cases where the qualifying child is aged 18 and over, a yearly claim must be made.
The relevant claim Complete form SPCC1 - Claim for Single Person Child Carer Credit Primary Claimant (PDF, 163KB) must be completed and submitted to your Revenue office , or an online claim may be made using PAYE Services in myAccount.
Relinquishing a claim to the Single Person Child Carer Credit in Favour of Another Claimant
The primary claimant of the credit may relinquish (surrender) their entitlement to this tax credit to another individual by completing the relevant section on Form SPCC1.
Note: Once it is relinquished and claimed by another individual known as the secondary claimant, the tax credit stays with the secondary claimant for the remainder of that tax year.
If the primary claimant withdraws their relinquishment subsequently, they cannot avail of the credit until the following year. The primary claimant must notify their Revenue office, in writing, if they wish to withdraw a relinquishment.
The secondary claimant must also be someone who is single, widowed, a surviving civil partner, deserted, separated (from spouse or civil partner), divorced or whose civil partnership has been dissolved.
A qualifying child must reside with the secondary claimant for not less than 100 days during the tax year. For the purposes of this legislation, the greater part of a day will be counted as a day. Therefore, where a child resides with a claimant from before noon on one day and stays with that claimant until the following evening that would be counted as two days.
The relevant claim form SPCC2 - Claim for Single Person Child Carer Credit Secondary Claimant (PDF, 169KB) must be completed by the secondary claimant and submitted to their Revenue office. This form is not to be completed unless the primary claimant has relinquished the tax credit.
Note: Only one credit will be granted in the year to either the primary claimant or secondary claimant.
Individuals who have been long-term unemployed for at least 15 months prior to starting their own business as a sole trader can claim a two-year income tax exemption up to a maximum of €40,000 income per annum.
This exemption will cease on 31 December 2018.
For more information, refer to Start your own Business.
Tax Relief at Source (TRS) on Secured loans
Income tax relief for home mortgage interest is granted at source by your mortgage lender on behalf of Revenue and the relief due is based on the amount of qualifying interest paid during the year subject to the overall limits.
For more information, refer to TRS for Mortgage Interest Relief.
Your mortgage repayment is reduced by the amount of the tax relief. Any future adjustments in the tax relief (for example, arising from changes in interest rates) will be made automatically by the lender. Borrowers who wish to claim for relief due for previous years must apply online: Mortgage Interest Relief.
Unsecured Home Loans
Relief for interest payments made on unsecured home loans taken out on or before 31 December 2012 and used for qualifying purposes, that is repair or improvement of your sole or main residence can be claimed from Revenue at the end of the tax year.
If you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving TRS on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.
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
Income tax relief on interest paid on qualifying home loans is:
- 25 per cent for years 1 and 2,
- 22.5 per cent for years 3, 4 and 5,
- 20 per cent 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, or
- €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 per cent. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are:
- €6,000 for individuals who are married, in a civil partnership, widowed or surviving civil partner, or
- €3,000 for single individuals.
For years 2012 to 2017 inclusive:
- Individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008 will receive tax relief at a rate of 30 per cent on the qualifying interest paid, subject to the appropriate first time buyers and non-first time buyers thresholds.
- Individuals who purchased their second or subsequent principal private residence on or before 31 December 2008, but only where the first principal private residence was purchased on or after 1 January 2004, will also receive tax relief at 30 per cent of the qualifying interest paid subject to the appropriate first time buyers and non-first time buyers thresholds.
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 or 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 TRS for Mortgage Interest Relief.
Tax relief at the standard rate of income tax (20 per cent) is available for tuition fees. This includes the student contribution but not examination fees, registration fees and administration fees. The maximum limit on qualifying fees for the academic years 2016 / 2017 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
in respect of whom relief is claimed is a
|Part time -
(Where all the students
in respect of whom relief is claimed are
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 second and subsequent children in their claim.
Where fees are refunded or partly refunded, you must notify your Revenue office within 21 days. Failure to do so may result penalty charges.
For more information, see Leaflet IT 31 - Tax Relief for Tuition Fees.
If you pay tax under the PAYE system, the quickest and easiest way to claim most tax credits is to use PAYE Services in myAccount.
Certain tax credits cannot be claimed online and a claim form must be completed and submitted to your Revenue office.
If you are self-employed, tax credits can be claimed by completing the relevant section on your annual tax return.
Revenue claim forms and leaflets referred to in this guide can be downloaded or requested by contacting our LoCall service on 1890 306 706, (ROI only), + 353 1 702 3050 (if calling from abroad
This is an automated telephone service and you will be asked to give your name, address and the title of the leaflet you require.
Certain claim forms are attached to the relevant Revenue information leaflet dealing with the subject.
If you are a person with a disability and require this or any other Revenue leaflet in an alternative format the Revenue Access Officer can be contacted at: email@example.com
If you are calling from outside the Republic of Ireland phone +353 1-702 3011
If you are taxed under the Self-Assessment system you may contact the Revenue office shown on your Notice of Assessment acknowledgment letter.
Please note that the rates charges for use of 1890 LoCall numbers may vary among different service providers.