Nursing Home Tax Relief 2026 — 20% income tax relief on out-of-pocket nursing home and home care costs
Nursing Home Tax Relief Ireland 2026
Nursing home costs in Ireland are among the most significant financial burdens any family faces. The portion of fees you pay yourself — not reimbursed by Fair Deal, health insurance, or the State — qualifies for 20% income tax relief. You can claim for a parent's nursing home fees on your own return. The same relief applies to home care employment costs. Back-claim up to four years. Many families are unaware this relief exists and have never claimed it.
Nursing Home Tax Relief — At a glance
- Relief rate
- 20% of qualifying out-of-pocket costs
- Upper limit
- None
- Who can you claim for
- Yourself, spouse, or a dependant (incl. parents)
- Also covers
- Home carer employment costs (instead of nursing home)
- Years you can back-claim
- Up to 4 prior years (back to 2022 in 2026)
- How to claim
- Revenue myAccount — "Health Expenses"
What qualifies — nursing home and home care
| Expense | Qualifies? | Key condition |
|---|---|---|
| Private nursing home fees paid out of pocket | Yes | Only the portion not covered by Fair Deal, insurance, or State |
| Fair Deal personal contribution (your 80% income + asset contribution) | Yes | The amount you personally contribute to Fair Deal qualifies |
| Cost of employing a home carer for an incapacitated relative | Yes | Must be for care of a person due to illness or disability |
| Home care agency fees paid directly | Yes | Same qualifying rules as employing a carer directly |
| The portion paid by Fair Deal (State contribution) | No | Only personal out-of-pocket costs qualify |
| General household help or cleaning | No | Must be medical care — general domestic help does not qualify |
How much you save — worked examples
Annual tax refund at 20% relief
| Out-of-pocket nursing home costs/year | Tax relief (20%) | Illustrative scenario |
|---|---|---|
| €5,000 | €1,000 | Partial private contribution on top of Fair Deal |
| €10,000 | €2,000 | Lower-cost private nursing home, no Fair Deal |
| €20,000 | €4,000 | Mid-range private nursing home fee per annum |
| €35,000 | €7,000 | Higher-end nursing home, full private pay |
| €50,000 | €10,000 | Premium private nursing home, full private pay |
Actual refund depends on your personal tax situation. The relief reduces your tax bill by 20% of qualifying costs — or generates a refund if you have already paid the tax through PAYE.
Claiming as a child for a parent in a nursing home
One of the most commonly missed uses of this relief: an adult child who is paying (or contributing to) a parent's nursing home fees can claim the 20% relief on their own personal tax return. The parent does not need to be the claimant. The conditions are:
- The parent is financially dependent on you (you are primarily supporting them)
- You actually paid the nursing home fees from your own money
- The fees were not reimbursed by insurance, Fair Deal, or another source
If you have been paying a parent's nursing home fees for several years and never claimed, you can back-claim up to four years on your own return — potentially recovering thousands of euro.
Fair Deal interaction — what can you actually claim?
Under Fair Deal, the State pays the majority of nursing home costs. The resident pays a personal contribution of:
- 80% of their assessed income (pension, etc.)
- 7.5% per year of the value of any assets above the asset threshold
That personal contribution — the amount the resident or their family actually pays — qualifies for Medical Expenses Tax Relief at 20%. Nursing home fees above and beyond the Fair Deal structure (for example, additional services not covered by Fair Deal) also qualify if paid out of pocket.
Frequently asked questions
Can I claim for a parent's nursing home fees even if they also have a pension?
Yes. The fact that a parent receives a pension (which is used toward their Fair Deal contribution or nursing home fees) does not prevent you from claiming the relief on amounts you personally pay. What matters is that you paid qualifying expenses out of your own pocket, they were not reimbursed, and you are a taxpayer in Ireland who can offset the relief against your own tax bill.
Is there a Nursing Home Tax Credit separate from Medical Expenses?
No. Nursing home fees are claimed as Medical Expenses (Health Expenses) through Revenue myAccount. There is no separate "Nursing Home Tax Credit." The same 20% standard rate applies. Note: there is a separate Home Carer Tax Credit (worth €1,800/year) for a spouse who stays at home to care for dependants — this is different and should also be checked if applicable.
Do I need receipts from the nursing home to claim?
You must keep receipts and invoices from the nursing home — but you do not submit them with the claim on Revenue myAccount. Revenue may audit claims for health expenses, and if asked you must produce evidence of payments made. Keep all statements, invoices, and payment confirmations for at least six years.
What if my parent dies during the year — can I still claim for the fees paid?
Yes. Nursing home fees paid for a dependant who passes away during the year still qualify for the relief. The fees paid up to the date of death on qualifying nursing home care remain a valid health expense claim. The claimant is the person who paid the fees.
Can I claim for a nursing home abroad?
Medical expenses incurred abroad generally qualify for Irish tax relief if the treatment would qualify in Ireland. Nursing home care that qualifies in Ireland should also qualify if provided abroad. Keep full documentation — Revenue may have questions about non-Irish invoices. The key test is whether the care is medical/nursing care for an ill or incapacitated person.
- You can claim on someone else's behalf — an adult child paying a parent's nursing home fees can claim the relief on their own return.
- Even if your parent is on Fair Deal, their personal contribution (80% income + asset contribution) still qualifies for relief.
- Home care employment costs qualify at the same 20% rate — not just nursing home fees.
- There is no upper limit on qualifying expenses — the larger the fees, the larger the potential relief.
- This is claimed through "Health Expenses" in Revenue myAccount — there is no separate nursing home form.
If you need help organising and submitting the tax relief claim for nursing home fees, Marina Luna at d'Emilia Accounting is a specialist in Revenue health expense relief.
Related guides
This page was reviewed against official Revenue.ie guidance and updated to reflect 2026 Nursing Home Tax Relief qualifying costs, Fair Deal interaction, and claim process.