On €20,000 of private home care, a higher-rate taxpayer saves €8,000 (our sum: 40% of €20,000). It covers agencies as well as carers you employ directly.
Quick facts
- Relief rate
- Your highest rate, up to 40%
- Maximum
- €75,000 per incapacitated person
- Agencies
- Yes, covered
- HSE-funded care
- Not covered
- Housekeeper only
- Not covered
- Claim
- myAccount, Form HK1 if asked
Who it covers
The person cared for must be you, your spouse or civil partner, or a relative of either of you, and totally incapacitated by physical or mental infirmity. "Revenue also gives relief on the cost of care service providers or agencies, such as:" charities and commercial home care companies.
How much
"The deduction is allowed at the individual's marginal rate of income tax." You claim the lower of "the actual cost of employing a carer or €75,000 per each incapacitated person."
"Relief for employing a carer is granted by way of a deduction against taxable income. To benefit, you must have paid tax in the relevant year."
What's excluded
"You cannot claim relief for employing a carer if they are employed as a housekeeper only." Care funded by "the Health Service Executive (HSE) or a local authority." doesn't count either.
If you claim this relief, you can't also claim the "Incapacitated Child Tax Credit or Dependent Relative Tax Credit ." for the same person.
How to claim
Claim in Revenue myAccount: for this year under 'Manage your tax', or for any of the last 4 years under 'Review your tax' and an Income Tax Return. Pick 'You and your family' then 'Employing a Carer'. Revenue may ask for Form HK1. If you employ the carer directly, Revenue's page on tax obligations when employing a carer explains your duties.
Common questions
How much tax relief can I get for employing a carer?
Relief at your highest rate of tax on the actual cost, up to €75,000 a year for each incapacitated person.
Does home care from an agency qualify for tax relief?
Yes. Revenue gives relief on care service providers and agencies, including charities and commercial home care companies.
Can I claim for care paid by the HSE?
No. You cannot claim relief for funding you receive from the HSE or a local authority.
Can I claim this relief and the Dependent Relative Tax Credit?
Not for the same person. If you claim relief for employing a carer, you can't claim the Incapacitated Child or Dependent Relative credit for them.
- €8,000 — €20,000 of private home care at the 40% rate = €8,000 less tax
- €20,000 — an illustrative year of private home care costs