What Is the Home Carer Tax Credit?

The Home Carer Tax Credit is one of the most valuable and often under-claimed tax credits in Ireland. Designed to support families where one spouse or civil partner works in the home caring for children, elderly dependants, or people with disabilities, it can reduce your overall income tax liability by hundreds of euros each year.

In this guide, we’ll explain what the Home Carer Tax Credit is, who qualifies, the 2025 tax credit value, the income limits, and the step-by-step process to apply through Revenue.

What Is the Home Carer Tax Credit?

The Home Carer Tax Credit is a refundable tax credit that reduces the income tax owed by married couples or civil partners who are jointly assessed and where one partner works primarily in the home caring for a dependent person.

It’s specifically aimed at situations where:

• One spouse or partner earns the main household income
• The other spouse or partner either does not work outside the home or earns below a certain income threshold
• There is at least one dependent person being cared for full-time at home

Value of the Home Carer Tax Credit (2025)

For the 2025 tax year, the Home Carer Tax Credit is worth €1,950.

This amount is deducted directly from your income tax bill, meaning:

• If you owe €4,000 in income tax, the credit reduces it to €2,200
• If your tax liability is lower than €1,950, the credit will reduce it to zero (but you won’t receive a cash refund for the unused amount)
• The Home Carer Tax Credit is worth €1,800 for 2024

Use our salary after tax calculator to see how much the Home Carer Tax Credit can save you in real time via payroll.

Who Qualifies for the Home Carer Tax Credit?

To claim the Home Carer Tax Credit in Ireland, you must meet all of the following criteria:

1. Joint Assessment Required – You must be married or in a civil partnership and be taxed under the joint assessment system
2. Dependent Person – You must be caring for at least one dependent person who is a child under 18, a person over 65 or a person with a disability who requires care
3. Income Limit for the Home Carer – The spouse or partner providing the care must have an annual income not exceeding €7,200 to receive the full credit
4. If income is between €7,200 and €11,100, a reduced credit applies
5. No credit is available if income exceeds €11,100
6. Residency – Both spouses or partners must be resident in Ireland for tax purposes

Income Reduction Formula

If the home carer’s income is above €7,200 but below €11,100, the credit is reduced by 50% of the amount over €7,200.

Example:

• Home carer earns €8,000
• €8,000 – €7,200 = €800
• 50% of €800 = €400 reduction
• €1,950 – €400 = €1,550 credit available

How to Apply for the Home Carer Tax Credit

You can claim the Home Carer Tax Credit yourself through the Revenue Online Service (ROS) or myAccount - but many people find the process confusing, especially when dealing with joint assessment, income thresholds, and eligibility checks. The credit can either be claimed in real time via payroll or on your tax return.

That’s where Irish Tax Hub’s tax return service comes in.

When you use our service:

• We check if you’re eligible for the Home Carer Tax Credit (and any other credits you may be missing)
• We calculate the maximum credit you can claim based on your income and dependent details
• We handle the entire Revenue application process for you, including updating your Tax Credit Certificate (TCC)
• We can backdate claims for up to four years, often resulting in significant tax refunds for our clients

Instead of spending hours navigating Revenue’s forms, let us take care of it and ensure you don’t leave money on the table.

Click here to start your claim today with Irish Tax Hub — we’ll confirm your eligibility, file your application, and make sure you get every euro you’re entitled to.

Claiming for Previous Years

You can backdate your claim for the Home Carer Tax Credit for up to four previous tax years. In 2025, you can still claim for:

• 2021
• 2022
• 2023
• 2024

This could result in a significant tax refund if you qualified in prior years but didn’t apply.

Common Mistakes When Claiming

• Applying without joint assessment – Separate assessment couples are not eligible
• Forgetting to include the home carer’s income when calculating eligibility
• Assuming the credit applies automatically – You must actively claim it from Revenue
• Misunderstanding the definition of dependent person

Why This Tax Credit Matters

With the rising cost of living in Ireland, the Home Carer Tax Credit can be a vital source of savings for families where one partner is at home providing care. Many eligible couples miss out on this credit simply because they’re unaware it exists or misunderstand the criteria.