## What it is
The Home Carer Tax Credit supports families where one spouse remains at home to care for one or more dependents. It is available only to married couples and civil partners taxed under joint assessment.
In 2026 the maximum credit is €1,950. Claimants also retain the higher single income SRCOP of €53,000 rather than splitting bands.
## Who is a dependent
A dependent for this credit is:
- A child for whom Child Benefit is paid
- A person aged 65 or over related to either spouse
- A person with a permanent incapacity who needs care
The dependent must normally reside with the couple, or in the case of an elderly relative or incapacitated person, within 2 km if they live separately.
## Income test for the home carer
The credit reduces if the home carer's own income exceeds €7,200:
- Carer income up to €7,200: full €1,950 credit
- Carer income €7,200 to €11,100: tapered credit
- Carer income over €11,100: no credit
The taper formula reduces the credit by half of the income excess above €7,200.
## Worked example, full credit
Michelle stays at home to care for two children aged 4 and 6. Her husband Padraic earns €60,000. Michelle has no income.
- Joint assessment with single income SRCOP of €53,000
- Home Carer Tax Credit: €1,950 (full)
- Combined credits: Personal €4,000, PAYE €2,000, Home Carer €1,950 = €7,950
Padraic's tax:
- 20 percent on €53,000 = €10,600
- 40 percent on €7,000 = €2,800
- Less credits = €13,400 minus €7,950 = €5,450
Without the Home Carer Credit, the family would pay €1,950 more.
## Worked example, tapered
Niamh works part time earning €9,000 while caring for her children.
- Excess above €7,200: €1,800
- Reduction: half of €1,800 = €900
- Credit: €1,950 minus €900 = €1,050
## Trade off with two band system
A couple cannot claim the Home Carer Tax Credit and the increased dual income SRCOP at the same time. The choice depends on which gives the bigger overall tax saving.
If the carer earns close to or above €11,100 the dual income band may be more valuable. If they earn under €7,200, the Home Carer route usually wins.
Revenue automatically applies whichever option is more beneficial when you submit your Statement of Liability claim.
## Multiple dependents
The credit is per couple, not per dependent. Caring for multiple children or elderly relatives does not increase the credit beyond €1,950.
## How to claim
Claim through Revenue myAccount during the year (for adjustment of RPN) or via Statement of Liability after year end.
## Educational notice
This article describes general rules. Family tax planning is individual. Consult a qualified tax adviser for specific circumstances.