Tánaiste Simon Harris has signalled there will be an increase to the Rent Tax Credit in next month’s Budget.
The tax credit, which was introduced four years ago, currently amounts to €1,000 for a single individual and €2,000 for a jointly assessed couple.
Speaking at the Fine Gael parliamentary party think-in in Gorey, Co Wexford, Mr Harris said he is “positively disposed” to increasing the rate and noted it was not increased last year.
“I always say this to colleagues, if it’s in the programme for government, that’s our North Star. That’s what I’m meant to be trying to deliver,” he said.
“I’m positively disposed to trying to do something in relation to this, but any finance minsiter has to make it all add up on the day and obviously there are limitations in the size of the tax package, but I’m hopeful we can do something about it.”
Mr Harris said the increase in the Rent Tax Credit is being examined and looked at “positively” ahead of the Budget.
Receiving the credit is dependent on a renter’s income tax liability for the year, but there was no increase announced in last year’s Budget.
It was first introduced for the year 2022, with a credit of €500 for an individual and €1,000 for a couple.
It doubled to €1,000 per person and €2,000 per couple in 2024.
The credit has previously been criticised by the Opposition as it is estimated that just a third of those eligbile have actually claimed the tax.
They cite concerns from renters around providing their landlords details and have raised concerns that the rent tax credit has not been sufficiently advertised to those eligible for it.