Who qualifies
A jointly assessed married couple where one spouse stays at home to care for one or more dependent persons, including children under 18 and incapacitated relatives.
How to claim
Tick the Home Carer box in Manage Your Tax 2026 inside myAccount. Revenue will adjust the working spouse RPN within five working days. Reconfirm each year because Revenue does not auto-renew.
Detailed explanation
The Home Carer Tax Credit supports jointly assessed couples where one spouse remains at home to care for a dependent. From 2026 the maximum credit is 1,950 euro and it is granted to the working spouse against their PAYE liability. The dependent can be a child under 18, a child over 18 in full-time education, an incapacitated person, or a relative aged 65 or over who lives with the couple or in a neighbouring property within two kilometres. The home carer can earn up to 7,200 euro per year without affecting the credit. Income above 7,200 reduces the credit on a tapered basis: the credit reduces by 50 cent for every euro of carer income above 7,200, so it disappears entirely once the carer earns 11,100 euro. Carer Allowance, Carer Benefit and Maintenance Allowance from the Department of Social Protection do not count towards the income test. Couples cannot claim the Home Carer Credit and the increased standard rate band for two earners in the same tax year; Revenue automatically applies whichever produces the lower tax bill. The credit was specifically retained in Budget 2026 as part of the cost of living package and increased from 1,800 to 1,950 euro. Same sex civil partnerships qualify on identical terms. If the dependent passes away during the year, the credit is granted in full for that final year.
Worked example
Rachel earns 65,000 euro. Her husband David stays home with their three children and earns 5,000 euro from occasional work. The Home Carer Credit is fully available because David earns under 7,200. Rachel claims 1,950 euro of credit, reducing her income tax bill from about 12,400 to 10,450 euro, an annual saving of 1,950 euro.