Rates last updated: 22 October 2026 · How we verify
Home Carer Tax Credit: €1,950 for One-Income Couples, and the Choice That Decides Whether It's Worth Claiming
The Home Carer Tax Credit is for a married couple or civil partners, jointly assessed, where one partner stays at home to care for a child, an older relative or someone with a disability. It is worth €1,950 a year in 2026, and most couples who qualify have never claimed it, because Revenue has no way of knowing who is at home.
- €1,950 off a jointly assessed couple's income tax in 2026 (€2,050 from 2027, announced and subject to the Finance Bill).
- In full if the home carer's own income is under €7,200, tapering to nothing at €11,100.
- The dependant is a Child Benefit child, a person aged 65 or over, or a person permanently incapacitated, living with you or, for a relative, within 2 km.
You cannot have both this credit and the increased rate band for a second earner; in practice Revenue grants whichever is worth more, and below about €7,930 of second income the credit wins. Four years can be claimed. Estimate yours with the Tax Refund calculator.
Below: the conditions, the income taper with the arithmetic, the worked example for a one-income couple, the credit-versus-band choice when the carer has some income, and how to claim and backdate it.
Who qualifies for the Home Carer Tax Credit?
- You must be married or in a civil partnership and jointly assessed, and one of you must care for at least one dependent person.
- The dependant is a child for whom Child Benefit is paid, a person aged 65 or over, or a person permanently incapacitated by mental or physical disability.
- A spouse or civil partner is never the dependant, and it's one credit per couple, however many dependants.
- Joint assessment. Couples taxed under separate assessment or separate treatment do not qualify until they opt for joint assessment; how the three options work is in joint assessment in Ireland.
- A child. Any child for whom you receive Child Benefit from the Department of Social Protection, so the credit normally runs until the child turns 16, or until 19 while they stay in full-time education (Child Benefit has covered 18-year-olds in education since May 2024).
- An older or incapacitated relative. A relative of either partner does not have to live in your home: next door, on the same property or within 2 km qualifies, provided there is a direct communication link such as a phone or alarm. A dependant who is not a relative must live with you.
- The carer's income. Under €7,200 for the full credit; Carer's Allowance and Carer's Benefit from the Department of Social Protection are ignored for this test.
Revenue's conditions are on its qualifying for the Home Carer Tax Credit page.
How does the carer's own income reduce the credit?
- If the home carer earns €7,200 or less, the full €1,950 applies; above that, it's reduced by half of the excess.
- €7,450 of income gives €1,825, €9,000 gives €1,050, and at €11,100 or more there is nothing left.
- Income means the carer's own income from any source except the two carer's payments.
| Home carer's income (2026) | Reduction | Credit |
|---|---|---|
| €7,200 or less | none | €1,950 |
| €7,450 | (€7,450 − €7,200) ÷ 2 = €125 | €1,825 |
| €9,000 | (€9,000 − €7,200) ÷ 2 = €900 | €1,050 |
| €10,000 | (€10,000 − €7,200) ÷ 2 = €1,400 | €550 |
| €11,100 or more | credit fully withdrawn | €0 |
The rates and the taper are on Revenue's Home Carer Tax Credit rates page. Budget 2027 raises the credit to €2,050 from 2027, subject to the Finance Bill, which moves the upper limit of the taper to €11,300; see what Budget 2027 changes.
What is it worth to a one-income couple on €60,000?
- A couple on a single €60,000 salary with a child at home pays €7,400 of income tax under joint assessment with the married and employee credits.
- With the Home Carer Tax Credit it is €5,450: €1,950 less, every year.
- Never claimed for the four open years, 2022 to 2025 (credits of €1,600, €1,700, €1,800 and €1,950), that is €7,050.
| Calculation | Amount | |
|---|---|---|
| Tax at 20% on the one-income band | €53,000 × 20% | €10,600.00 |
| Tax at 40% | €7,000 × 40% | €2,800.00 |
| Less married credit and employee credit | €4,000 + €2,000 | −€6,000.00 |
| Income tax without the credit | €7,400.00 | |
| Less Home Carer Tax Credit | −€1,950.00 | |
| Income tax with the credit | €5,450.00 |
USC and PRSI do not change; the credit touches income tax only. If the same couple also rents, the Rent Tax Credit of up to €2,000 for a jointly assessed couple goes on the same return, as set out in the Rent Tax Credit guide. A couple who moved to Ireland during the year gets the full credit for the arrival year, on top of the part-year refund explained in how to claim tax back in Ireland.
Credit or increased band: which wins when the carer earns something?
- A two-income jointly assessed couple can instead raise the 20% band by the lower of €35,000 and the second income, but can't have both.
- In practice Revenue grants the more beneficial treatment (Tax and Duty Manual 15-01-29).
- The credit wins while the second income is under about €7,930, and the band wins above it.
Main earner €60,000, carer earns €9,000 part-time, one child:
| Home Carer credit | Increased band | |
|---|---|---|
| Main earner's 20% band | €53,000: the €9,000 increase is given up | €53,000 + €9,000 = €62,000 |
| Income tax before credits on €69,000 | €53,000 × 20% + €16,000 × 40% = €17,000 | €62,000 × 20% + €7,000 × 40% = €15,200 |
| Credits | married €4,000 + employee €2,000 + employee €1,800 (20% of €9,000) + Home Carer €1,950 − (€9,000 − €7,200) ÷ 2 = €1,050: €8,850 | married €4,000 + employee €2,000 + employee €1,800: €7,800 |
| Tax for the year | €17,000 − €8,850 = €8,150 | €15,200 − €7,800 = €7,400 |
Here the band is worth €1,800 (€9,000 moved from 40% to 20%) against a credit of €1,050, so the band wins by €750 and Revenue applies the band. At €8,000 of second income the credit is €1,550 and the band €1,600, still the band; at €7,500 the credit is €1,800 and the band €1,500, so the credit wins. The crossover is about €7,930 whenever the couple's total income is at least €53,000 plus the second income.
The band is worth less when the couple's combined income is close to €53,000, because there is less 40% tax to move: with €50,000 plus €9,000, only €6,000 sits above €53,000, so the band is worth €1,200 against the same €1,050 credit. If the combined income is inside €53,000 there is nothing to move and the credit is the only option worth having. The increase is also not transferable: it is the carer's own income that uses it, so the main earner's band stays at €53,000.
Who misses the Home Carer Tax Credit?
- Couples who never opted for joint assessment, and couples who assume Revenue knows one partner is at home.
- Carers of an elderly parent living nearby who didn't realise a relative outside the home counts.
- Couples where the carer has a small income and nobody ran the credit-versus-band comparison.
- Not jointly assessed. Two people who married abroad, or who never told Revenue they married, are taxed as single and cannot claim. Joint assessment is elected in myAccount and can be backdated to the year after marriage.
- Child Benefit in the other partner's name. It does not matter which partner receives it; what matters is that it is paid for the child.
- A parent next door. A relative aged 65 or over, or incapacitated, within 2 km and with a phone link, is a dependant for this credit without moving in.
- Carer's Allowance. Receiving it does not reduce the credit; it is excluded from the income test.
For a single parent the equivalent credit is the Single Person Child Carer Credit, €1,900 plus a €4,000 band, covered in the SPCCC explained.
How do you claim it, and how far back?
- Current year: myAccount → "Manage your tax for the current year" → "Add new credits" → "You and your family" → Home Carer Tax Credit.
- Past years: add it to the Income Tax Return for each year under "Review your tax for the previous 4 years".
- In 2026 the open years are 2022 to 2025, and 2022 closes on 31 December 2026.
- Confirm joint assessment for each year you claim; if you were separately assessed, apply for joint assessment first.
- Claim the current year so the credit is on the certificate and the next payslips reflect it.
- File each open year as an Income Tax Return, with the rent, medical and other reliefs for that year on the same form. The credit amount differs by year (€1,600 for 2022, €1,700 for 2023, €1,800 for 2024, €1,950 for 2025); Revenue applies the right figure.
- Read the Statement of Liability that issues about five days later: how it reads is in Statement of Liability explained.
What does Revenue actually ask for?
- The dependant's name, date of birth, PPSN where they have one, the relationship, and where they live if not in your home.
- The home carer's income for the year; nothing is uploaded, but keep Child Benefit correspondence or evidence of the relative's age or incapacity.
- Dependant's details, including PPSN and date of birth.
- Child Benefit letter for a child, or evidence of age or incapacity for an adult dependant.
- The carer's income for each year, including any small employment or self-employment.
- Your IBAN on your Revenue profile for the past-year refunds.
If the carer has some income and the years involve a move or a change of assessment, our Tax Back service runs the credit against the band for each open year and claims the better one. No refund, no fee.
Where do you start?
Open the main earner's tax credit certificate in myAccount. If you are jointly assessed with a partner at home and the Home Carer Tax Credit is not on it, claim this year today and file 2022 before it closes.
Related reading
Questions we get asked
How much is the Home Carer Tax Credit in 2026?
€1,950 a year for a jointly assessed married couple or civil partners where one partner cares for a child, a person aged 65 or over, or a person permanently incapacitated. It rises to €2,050 in 2027 under Budget 2027, announced and subject to the Finance Bill.
Can the home carer have any income?
Yes, up to €7,200 for the full credit. Above that the credit is reduced by half of the excess and disappears at €11,100 in 2026. Carer's Allowance and Carer's Benefit are not counted.
Can I claim the Home Carer credit and the increased rate band?
No. A couple with two incomes gets either the Home Carer Tax Credit or the increase in the 20% band for the second income, whichever is worth more. In practice Revenue grants the better one; the credit wins below about €7,930 of second income.
Does a parent living nearby count as a dependant?
Yes, if they are 65 or over or permanently incapacitated, live next door, on the same property or within 2 km, and there is a direct communication link such as a phone. A dependant who is not a relative must live in your home.
Can I backdate the Home Carer Tax Credit?
Yes, for the four open years, by completing an Income Tax Return for each year you were jointly assessed and qualified. In 2026 that is 2022 to 2025; 2022 closes on 31 December 2026.