What Is a Tax Credit?
A tax credit is an amount that reduces your income tax liability directly — euro for euro. If your total tax bill is €3,000 and you have tax credits of €2,000, you pay only €1,000. Tax credits do not reduce USC or PRSI.
Updated for 2026 Revenue rates.
Personal Tax Credit
Every individual is entitled to a personal tax credit. For 2026:
- Single person — €2,000
- Married or civil partner — €4,000 (combined, one credit per spouse)
- Widowed or surviving civil partner — €2,540 (no dependent children; higher after bereavement), then €2,000
Employee (PAYE) Tax Credit
If you are an employee paying tax through PAYE, you are entitled to the employee tax credit. For 2026 this is €2,000. This credit is available only to employees — not to self-employed individuals or company directors who are also employees of their own company.
Home Carer Tax Credit
This credit is available to married couples or civil partners where one spouse works in the home caring for a dependent person (child, elderly relative, or person with a disability). For 2026:
- Maximum credit — €1,950
- Income limit — the caring spouse can earn up to €7,200 per year before the credit starts to reduce
- The credit reduces by 50% of income over €7,200 and is fully withdrawn at approximately €10,600
Single Person Child Carer Credit (SPCCC)
This credit of €1,900 is for single parents caring for a child on their own. Key conditions:
- You must be the principal carer of a qualifying child
- The child must normally live with you for at least half the year
- Only one person can claim the credit per child
- The credit can be transferred to a family member who cares for the child if you do not claim it
Other Tax Credits
- Rent tax credit — up to €1,000 for single people, €2,000 for jointly assessed couples (see Rent Tax Credit guide)
- Health expenses relief — 20% relief on qualifying medical expenses
- Tuition fees relief — 20% relief on qualifying third-level fees up to certain limits
- Age tax credit — additional credit for those aged 65 or over
- Blind person's tax credit — €1,650
How to Claim Your Tax Credits
Most tax credits are automatically applied if you are registered with Revenue. You can check and update your tax credits through Revenue myAccount at revenue.ie. If your circumstances change (marriage, birth of a child, becoming a carer), update your Revenue profile immediately to ensure correct credits are applied.
Transferring Credits Between Spouses
Under joint assessment, one spouse can transfer unused tax credits and standard rate bands to the other spouse. This is handled automatically through the Revenue system when both spouses are registered, but it is worth checking that credits are allocated optimally to minimise the overall household tax bill.
2026 credit values (updated)
The key 2026 figures: personal tax credit €2,000 (single person; €4,000 for a married couple or civil partnership under joint assessment); employee tax credit €2,000 (PAYE workers); earned income credit €2,000 (self-employed, in place of the employee credit); home carer tax credit €1,950 (where one spouse cares for a dependent person, with the caring spouse's income under €7,200 before tapering); single person child carer credit €1,900 (principal carers of children); widowed person's credit €2,540 (no dependent children; higher in the first two years after bereavement); incapacitated child credit €3,800; age credit €245 (single, €490 married) for those 65+; and the Rent Tax Credit €1,000 (€2,000 jointly assessed). Budget 2026 left income tax credits unchanged — the tax cuts came via USC.
How credits interact with your band
Credits reduce your income tax bill euro-for-euro after the 20%/40% rates are applied to your income within your standard rate band (€44,000 single in 2026). They do not reduce USC or PRSI. If your credits exceed your tax bill, the excess is lost — you cannot carry unused credits forward, so it pays to ensure all your credits are allocated (and, if you are married, that unused credits transfer to your spouse). Your employer applies your credits through your RPN; if you start mid-year, credits are apportioned over the remaining pay periods.
Claiming and correcting credits
Most credits are applied automatically once Revenue knows your circumstances — register births, marriages and job changes in myAccount. If a credit is missing (for example, the home carer credit after a partner stops work), use the 'Request tax credits' service in myAccount or phone Revenue (01 738 36 36); the change is usually reflected in your next payslip, with any overpaid tax refunded. If your income has fallen (e.g., you moved to part-time work), request a review — you may be due an immediate refund rather than waiting for year-end.
Action steps
- Review your tax credits certificate (in myAccount) after any life change: marriage, baby, job change, bereavement.
- Claim the home carer credit if one partner cares for a dependent person at home.
- Single parents: claim the single person child carer credit (€1,900).
- Renters: add the Rent Tax Credit (€1,000) to your credits for a monthly boost.
- If your income drops, request a review for an immediate refund.