In the Republic of Ireland, tax credits reduce the amount of Irish income tax that a taxpayer pays in a given year. A few tax credits are granted automatically, while others can be claimed, either by simple notification to Revenue, or by completing a form.
All tax credits are expressed as an annual amount. All are non-refundable.
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The personal tax credit is granted to all taxpayers. The amount of the tax credit varies depending on personal circumstances; where a person qualifies for several of the below credits, only the highest is given.
| Single person | €1,830 |
| Married couple | €3,660 |
| Widowed person (qualifying for One-Parent Family credit) | €1,830 |
| Widowed person (no dependent children) | €2,430 |
| Widowed person in year of bereavement | €3,660 |
| Widowed person bereaved last year | €4,000 |
| Widowed person bereaved two years ago | €3,500 |
| Widowed person bereaved three years ago | €3,000 |
| Widowed person bereaved four years ago | €2,500 |
| Widowed person bereaved five years ago | €2,000 |
| Parent of an incapacitated child | €3,660 |
The PAYE tax credit is granted to employees and others who are paid most of their money under the PAYE system. This compensates them for the fact that their tax is paid throughout the year, rather than near the end of the year. The amount of the PAYE tax credit is €1,830; it is not transferable between spouses.
A person who turns 65 during the tax year is awarded an additional tax credit of €325; this is doubled for a married couple and is awarded as soon as either member of the couple reaches 65.
A person who maintains a relative at his/her own expense can claim a tax credit of €80, as long as the relative earns no more than €13,837. An individual entitled to claim this tax credit can also claim mortgage interest relief or medical insurance relief for payments made in respect of that relative[1].
A person who was a member of a trade union at any time during a tax year can claim a tax credit of €70 for that tax year.
Where a married couple is jointly assessed to tax, and one of the couple works in the home caring for one or more dependent persons, the couple can claim a home carer tax credit. To claim the full credit of €900, the carer must earn less than €5,080. The credit is decreased by €1 for every €2 the carer earns above that amount, so that a carer earning over €6,880 cannot claim the credit, but once granted the credit will still be claimable in future years[2], as long as the couple does not claim the increase in standard-rate band for dual-income couples.
For the purpose of the tax credit, the following persons are dependent persons[2]:
The dependent person must live with the carer, unless they are related, in which case they must live within 2 km of the carer[2].
The One-Parent Family credit of €1,830 is awarded, in addition to the personal tax credit, to a person who is widowed, deserted, separated, or unmarried, where a child resides with them for part of the tax year[3]. The child must be under 18 at the beginning of the year, or permanently incapacitated since before he or she was 21 or had left full-time education, or in full-time education for a minimum of two years[3].
A child includes a stepchild or an adopted child. If the child resides with both parents for part of the year, both parents can claim the full credit[3].
The One-Parent Family credit cannot be claimed by a person who qualifies for the Married Person's Tax Credit, or a person living together with another person as man and wife[3]. It is also not awarded where the child is earning money[4].