Tax Relief on Home Care Services

A middle-aged woman with gray hair and a pink headband holding a mug, smiling and talking to a woman with glasses and gray hair tied back, sitting at a breakfast table in a cozy home setting.
A young woman is helping an elderly woman in a wheelchair eat a meal, both smiling.

In many cases, tax relief is available, which can help reduce the cost of home care services. Tax relief is available at the payers marginal rate of tax, so it can be 20% or 40% depending on the tax rate applied.

If you are not paying tax currently, consider if there is another family member who can pay for the homecare services and they can then avail of the tax relief.

Tax relief can be claimed monthly and your monthly tax pay is reduced, or it can be claimed at the end of the tax year and Revenue will issue you with a refund.

Who can claim tax relief?

Tax relief may be available if:

  • The person receiving care is a spouse, civil partner, child, or other close relative.

  • The person receiving care is considered totally incapacitated due to illness or disability.

  • Care provided includes personal care, not just household support.

Restrictions:

You cannot claim tax relief if:

  • The carer is only providing general housekeeping.

  • You are already claiming certain tax credits (like the Incapacitated Child or Dependent

  • Relative Tax Credit).

  • The cost of care is already covered by funding from the HSE or a local authority.

How tax relief works:

Tax relief can be claimed at your highest rate of income tax (20% or 40%), up to a maximum of €75,000 per year. You’ll claim relief on the lower of:

  • The actual amount paid for care

  • The €75,000 annual limit

Tax relief must be claimed each year, and it can be done by submitting a simple form to Revenue. Even if you are not working or paying tax, another family member may be able to claim relief on your behalf.

You can find additional information here:

Tax Relief for Home Care >

Example:

If you pay €2,000 a month for a carer for 12 months, the total cost is €24,000. You can receive tax relief of €24,000 multiplied by 20% = €4,800.

If you pay tax at 40%, your relief for the year is €24,000 multiplied by 40% = €9,600.

When you take the tax relief into consideration at 20%, you could receive 20% back for every €36 spent on care. The cost to you of an hourly call from Mon to Fri is then reduced to €28.80 when the tax credit of 20% is considered.

How to claim this tax relief:

The quickest and easiest way to claim relief is through Revenue myAccount .

For 2021 and subsequent years, please follow these steps:

  1. sign into myAccount

  2. click on the 'Review your Tax for the previous 4 years' link in 'PAYE Services'

  3. request a Statement of Liability

  4. click on 'Complete Income Tax Return'

  5. on the 'Tax Credits & Reliefs' page, select 'You and your family' and then select 'Employing a Carer'

  6. complete and submit the form.

  7. Most people who claim this relief online receive their tax refund, if due, within five working days.

More information is available here:

Employing a Carer Tax Relief >