Income Tax Relief 2026 — 20% back on nursing home fees and home care costs paid out of pocket
Nursing Home Tax Relief Ireland 2026
The portion of nursing home fees you pay yourself — not covered by Fair Deal, health insurance, or the State — qualifies for 20% income tax relief with no upper limit. An adult child paying a parent's nursing home costs claims the relief on their own return. The same 20% relief applies to professional home care costs. Back-claim up to four years. Thousands of families paying nursing home fees have never claimed this relief.
Nursing Home Tax Relief 2026 — At a glance
- Relief rate
- 20% of qualifying out-of-pocket costs
- Upper limit
- None — no cap on qualifying costs
- Claim for
- Yourself, spouse, or any dependant (incl. parents)
- Also covers
- Home carer employment costs and agency fees
- Back-claim period
- 4 prior years (back to 2022 in 2026)
- How to claim
- Revenue myAccount — "Health Expenses"
What is Nursing Home Tax Relief?
Nursing Home Tax Relief is a 20% income tax relief available on the out-of-pocket costs of nursing home care for yourself, your spouse, or a financially dependant relative. It is not a separate credit or scheme — it is claimed as part of Medical Expenses (Health Expenses) Tax Relief through Revenue myAccount.
Nursing home fees in Ireland are substantial. Private nursing home costs typically range from €1,000 to €1,950 per week depending on location and care level — between €52,000 and €93,000 per year. Even under the Fair Deal scheme, a resident may pay a significant personal contribution. The 20% tax relief on those costs can amount to thousands of euro per year.
The same relief applies to the cost of employing a professional carer to look after an incapacitated person at home — whether through an agency or directly employed. If you choose home care over a nursing home, the qualifying costs attract the same 20% relief.
What qualifies and what does not
| Cost | Qualifies? | Key condition |
|---|---|---|
| Private nursing home fees (paid out of pocket) | Yes | Only the portion not covered by Fair Deal, health insurance, or the State |
| Fair Deal personal contribution (80% income + asset levy) | Yes | The amount you personally pay as your Fair Deal contribution qualifies |
| Additional nursing home charges above Fair Deal (e.g. extra personal services) | Yes | Any top-up costs for services not covered by Fair Deal |
| Professional home carer employed directly | Yes | Must be care for an incapacitated or ill person — not general domestic help |
| Home care agency fees | Yes | Same qualifying test — medical or personal care for an ill or incapacitated person |
| Nursing care provided at home by a qualified nurse | Yes | Qualifies as a medical expense — must be a qualified nurse providing nursing care |
| The portion of fees covered by Fair Deal (State contribution) | No | Only your personal out-of-pocket contribution qualifies |
| General domestic cleaning or household help | No | Must be medical or personal care for an ill person, not general housework |
| Companion or companionship services (non-medical) | No | Non-medical companion care does not qualify as a health expense |
| Residential care fees fully reimbursed by health insurance | No | Only the out-of-pocket element you paid qualifies |
How much you save — worked examples
Annual tax refund at 20% relief rate
| Out-of-pocket nursing home cost/year | Tax relief (20%) | Scenario |
|---|---|---|
| €4,000 | €800 | Personal Fair Deal contribution on modest income + assets |
| €10,000 | €2,000 | Partial private pay on top of Fair Deal |
| €24,000 | €4,800 | Mid-range private nursing home, no Fair Deal |
| €40,000 | €8,000 | Higher-cost private nursing home, private pay |
| €65,000 | €13,000 | Premium nursing home facility, full private pay |
Actual refund depends on personal tax situation. The 20% relief reduces your income tax bill or generates a refund if tax was already paid through PAYE. The person claiming must have sufficient income tax liability to absorb the relief (it cannot go below zero).
Example 1 — Adult child paying parent's nursing home fees
Ciaran is a PAYE employee in Dublin earning €55,000/year. His mother was admitted to a private nursing home in 2024 at a cost of €1,100/week (€57,200/year). She does not qualify for Fair Deal due to asset levels. Ciaran pays €20,000 of the fees from his own money each year; his mother pays the balance from her savings. Ciaran claims 20% relief on the €20,000 he paid: €4,000 refund per year. He also back-claims for 2022, 2023, and 2024 — receiving a further €12,000 in refunds for the three prior years in which he contributed and never claimed.
Example 2 — Fair Deal resident and personal contribution
Mary is 82 and has been in a nursing home under the Fair Deal scheme since 2023. Her Fair Deal personal contribution is €1,200/month (€14,400/year) — calculated as 80% of her pension income plus 7.5% per year of her assessable assets. Her daughter, who manages Mary\'s finances and helps cover some of the costs, claims 20% relief on the €14,400 personal contribution: €2,880/year. In addition, she claims for any supplementary costs (personal items, specialist visits) paid out of pocket — bringing the total qualifying expenses to approximately €16,000 and the refund to €3,200.
Example 3 — Home care as an alternative to nursing home
Sean\'s father, Padraig, has advanced Parkinson\'s and lives at home. Rather than placing him in a nursing home, Sean employs a home carer through an agency at €1,400/month (€16,800/year). He also contributes €400/month for nursing care from a qualified community nurse (€4,800/year). Total qualifying home care costs: €21,600. Sean claims 20% relief: €4,320 refund. The same relief that applies to nursing home fees applies here — the setting (home vs nursing home) does not affect eligibility provided the care is medical or personal care for an incapacitated person.
Claiming for a parent — what you need to know
One of the most impactful and most frequently missed applications of this relief is an adult child claiming relief on a parent's nursing home fees. Here is how it works:
- You claim on your own return: The son or daughter paying the fees claims the relief on their own income tax return — not the parent\'s. The relief reduces the claimant\'s own income tax bill or generates a refund for the claimant.
- The parent must be financially dependant on you: "Dependant" in this context means you are contributing to the parent\'s financial support. You do not need to be their sole supporter — if you contribute even a meaningful portion of the fees while other siblings or the parent\'s own income covers the rest, you can claim the relief on your portion.
- You must actually have paid the fees: You need evidence that the payment came from you — bank transfers, cheque stubs, or statements from the nursing home showing your payments.
- The fees must be unrecovered: Any portion covered by Fair Deal, health insurance, or any other source cannot be claimed. Only what you paid out of your own pocket qualifies.
Multiple adult children who each contribute to a parent\'s nursing home fees can each claim relief on their own individual contributions on their own separate returns.
Fair Deal interaction — what you can claim
Fair Deal (the Nursing Homes Support Scheme) is a State scheme that pays the majority of nursing home costs in exchange for a personal contribution from the resident based on their income and assets. Understanding exactly what is claimable under Fair Deal is important:
- The State\'s contribution: Not claimable. The portion Fair Deal pays directly to the nursing home is not an expense you incurred.
- The resident\'s personal contribution (80% of income + 7.5%/year of assets): Qualifies for 20% Medical Expenses Tax Relief. This is what the resident (or family members contributing on their behalf) actually pays from their own funds.
- Top-up fees for services not covered by Fair Deal: If the nursing home charges for personal services, activities, or extras beyond what Fair Deal covers, those additional charges also qualify.
- Ancillary costs for medical care: Prescription costs, specialist visits, and other medical costs for the resident that are not covered by Fair Deal or a Medical Card also qualify as part of the broader Medical Expenses relief.
In practice, a Fair Deal resident paying €1,400/month in personal contributions generates a 20% tax relief claim of €280/month — or €3,360/year — for whoever is covering those costs.
How to claim — step by step
- Gather your records
Collect all invoices, statements, and payment records from the nursing home for each year you are claiming. Identify the total fees you personally paid — excluding any amount covered by Fair Deal, health insurance, or the State. If multiple people contributed, calculate your own portion only.
- Log in to Revenue myAccount
Go to revenue.ie and sign in. If you do not have myAccount, register using your PPSN, date of birth, and identity details (Eircode or bank account). First-time setup takes about 10 minutes.
- Go to "Review Your Tax"
In myAccount, select "Review Your Tax" and choose the relevant tax year. Under "Tax Credits and Reliefs," select "Health Expenses."
- Enter nursing home costs
Under "Health Expenses," there is a category for nursing home fees. Enter the total qualifying amount you personally paid for the year. You can enter amounts for yourself and for dependants (including parents) on the same return. You will also enter any other qualifying health expenses for the year (GP, prescriptions, etc.).
- Submit and receive your refund
Revenue calculates the 20% relief and shows the estimated refund before you submit. For PAYE workers, refunds are typically paid by bank transfer within 5–10 working days. Self-assessed taxpayers see the adjustment on their annual return.
- Back-claim prior years separately
Repeat the process under "Review Your Tax" for each prior year you want to back-claim (up to 2022 if claiming in 2026). Revenue processes each year separately and issues individual refunds. If this is your first time claiming, doing all four years at once is worthwhile — it typically takes under 30 minutes in total.
Home Carer Tax Credit — a separate relief that may also apply
The Home Carer Tax Credit (worth €1,950/year in 2026) is a separate income tax credit available to a married couple or civil partners where one spouse stays home to care for a dependant — including an elderly parent or an incapacitated child or relative. It is entirely separate from the Nursing Home Tax Relief or Medical Expenses Tax Relief.
If you or your spouse are at home caring for an elderly parent or incapacitated relative, you may qualify for both:
- The Home Carer Tax Credit of €1,950/year (reducing your income tax bill directly), AND
- 20% Medical Expenses Tax Relief on any qualifying medical or care costs incurred for the dependant
These two reliefs do not conflict — they operate on separate parts of the tax system and can both be claimed in the same year. Check your tax credits in Revenue myAccount to confirm whether the Home Carer Credit has been applied.
Information Accuracy — This guide has been independently researched and reviewed using official Irish government sources available on the publication date. Government schemes, payment rates, eligibility rules and legislation may change over time. Before making financial, legal or welfare decisions, always confirm the latest information directly with the relevant Irish authority.
Frequently asked questions
What is Nursing Home Tax Relief in Ireland?
Nursing Home Tax Relief allows you to claim 20% income tax relief on out-of-pocket nursing home fees that are not covered by Fair Deal, health insurance, or any other State payment. The relief is claimed as a Health Expense through Revenue myAccount. You can claim for fees you paid for yourself, your spouse, or a dependant — including a parent or elderly relative. There is no upper limit on qualifying costs. The relief can also be claimed on the cost of employing a professional home carer for an incapacitated person.
Who can claim Nursing Home Tax Relief?
You can claim Nursing Home Tax Relief for nursing home fees paid for yourself, your spouse or civil partner, or a dependant. A dependant includes your children (any age if financially dependent on you), a parent, a grandparent, or any relative you are primarily supporting financially. Critically, the person paying the fees can claim the relief on their own return — a son or daughter who pays a parent's nursing home fees claims the relief on their own income tax return, not the parent's.
How much tax relief do I get on nursing home costs?
The relief is 20% of qualifying out-of-pocket nursing home costs not covered by Fair Deal, insurance, or the State. There is no upper limit. If you paid €24,000 in nursing home fees in 2025, you receive €4,800 back from Revenue. If you paid €40,000, you receive €8,000 back. The relief is claimed through Revenue myAccount as a health expense and is processed within 5-10 working days for PAYE workers.
Does Fair Deal affect Nursing Home Tax Relief?
If a person is on the Fair Deal scheme, the State pays the majority of nursing home costs. The resident pays a personal contribution based on 80% of their income and 7.5% per year of assessable assets. That personal contribution — the amount actually paid by the resident or their family from their own funds — qualifies for the 20% Medical Expenses Tax Relief. Only the out-of-pocket amount you personally paid qualifies; the portion covered by the State through Fair Deal does not.
Does the relief also cover home care costs?
Yes. If instead of nursing home care, you employ a professional carer to look after an incapacitated person at home, those costs also qualify for 20% tax relief as health expenses. This includes agency fees for home care, the cost of employing a carer directly, and nursing care provided at home by a qualified nurse. General domestic help or cleaning does not qualify — the care must be medical or personal care for someone who is ill or incapacitated.
Can I claim for a parent's nursing home fees on my own return?
Yes — this is one of the most commonly missed applications of this relief. If you are paying (or contributing to) a parent's nursing home fees, you claim the 20% relief on your own income tax return, not the parent's. The conditions are: you actually paid the fees from your own money, the fees were not reimbursed, and your parent is financially dependent on you (you are contributing to their support). You do not need to be the sole contributor — partial contributions qualify.
How do I claim Nursing Home Tax Relief?
Claim through Revenue myAccount at revenue.ie. Log in, go to "Review Your Tax," select the relevant tax year, and under "Tax Credits and Reliefs" choose "Health Expenses." Enter the qualifying nursing home fees paid for the year. You can claim for the current year and back-claim up to four prior years (back to 2022 if claiming in 2026). Do not upload receipts — but keep all invoices and payment records from the nursing home for six years in case of audit.
Can I back-claim Nursing Home Tax Relief for previous years?
Yes. You can back-claim for up to four prior tax years. In 2026, you can claim back to 2022. Many adult children who have been paying a parent's nursing home fees for years have never claimed the relief. A person who paid €20,000/year in nursing home fees and never claimed could recover 20% × €20,000 × 4 = €16,000 in refunded income tax by filing back-claims for four years through Revenue myAccount.
What records do I need to keep for Nursing Home Tax Relief?
You do not submit receipts or invoices when making the claim on Revenue myAccount — you simply enter the amounts. However, Revenue can audit health expense claims at any time, and you must be able to produce: nursing home fee invoices or statements, evidence of payment (bank statements, cheque records), correspondence showing the fees were not covered by Fair Deal or insurance. Keep all records for at least six years. If Revenue audits the claim and you cannot produce evidence, the relief can be withdrawn with interest.
Does the relief apply to nursing home fees paid for someone who has since died?
Yes. Nursing home fees paid for a dependant who passes away during a tax year still qualify for the relief on the fees paid up to the date of death. The claimant is the person who paid the fees. If you paid a parent's nursing home fees and they passed away, you can still claim relief on those fees in the normal way — either for the year they died or through a back-claim for prior years.
- You can claim on someone else\'s nursing home fees — an adult child paying a parent\'s fees claims the relief on their own income tax return. This is the most frequently missed application of this relief.
- Even if your parent is on Fair Deal, the personal contribution (80% income + 7.5%/year asset levy) still qualifies for 20% relief on the amount actually paid.
- Home care employment costs qualify at the same 20% rate as nursing home fees — not just residential care.
- There is no upper limit on qualifying expenses — the larger the fees, the larger the potential relief.
- This relief is claimed through "Health Expenses" in Revenue myAccount — there is no separate nursing home form or application.
- Multiple adult siblings can each claim relief on their own individual contribution to a parent\'s nursing home fees — on their own separate returns.
- General domestic help does not qualify — only medical or personal care for an ill or incapacitated person counts.
Related guides
This page was reviewed against official Revenue.ie, Citizens Information, and HSE guidance and updated to reflect 2026 Nursing Home Tax Relief qualifying costs, Fair Deal personal contribution rules, and home care employment costs.
Information Accuracy — This guide has been independently researched and reviewed using official Irish government sources available on the publication date. Government schemes, payment rates, eligibility rules and legislation may change over time. Before making financial, legal or welfare decisions, always confirm the latest information directly with the relevant Irish authority.