Rent Relief how to calculate

I have searched the forums and can not find the answer to this. Basically I just need to know how much you are likely to get back say if you are paying 1000/month in rent. I see the max return you can get in 2010 is 2K. It also states that it is based on the figure of 20% taxation.

So if you pay 1000/month (12k/year), I presume you do not get 20% (€2400) of this back as this figures seems quite high?

Can anyone explain?

Rent Relief for Private Rented Accommodation

Relief is due at the standard rate of tax (20%) in the tax years 2010 and 2011 subject to the following upper limits:

Personal Circumstances Tax Year 2010 Tax Year 2011
Single Under 55 max. €2,000€1,600
Single Over 55 max. €4,000€3,200
Widowed/ Married under 55 max. €4,000€3,200
Widowed/ Married over 55 max. €8,000€6,400

Assuming you are single and under 55.

You pay 12k pa rent (seems very, very high to me)

You get 20% tax relief on max rent paid of 2000 = 400 euro max tax relief.


See here:
http://www.revenue.ie/en/tax/it/leaflets/it1.html#section6

OK thanks. Sorry I took it that the 2000 was the max you could claim back ..


On an aside, why does 12K seem so high. 1k a month for a 1 bed apartment?

My friend pays 750 pm for a 1-bed apt in Cabra. To me, that is still too high.

How are we all expected to take pay cuts, tax increases, etc., when the cost of living is still so high?

(This is a general point, not directed at you.)


You pay 1000 pm. I just can't get over that.

I know somebody else who paid 1k pm for an apt above the Lidl on Cork street in Dublin. That was a few years back.

As a society, we need much lower property costs.

OP doesn't say it is an apartment

It could be a 4-bed detached house for all we know

Just incase it applies in this instance - As per Budget 2011, rent relief is not available for people who entered into a rental agreement after 07/12/2010. For those prior to that it is being phased out.

http://www.citizensinformation.ie/en/housing/renting_a_home/tax_relief_for_tenants.html[broken link removed]