Age Tax Credit 2026 — €245/year income tax reduction for people aged 65 and over
Age Tax Credit Ireland 2026
People aged 65 or over in Ireland receive an extra income tax credit of €245 per year — €490 for a couple where both are 65+. This is in addition to your other tax credits. Separately, if your total income is below €18,000 (single) or €36,000 (couple), you pay no income tax at all under the Age Exemption Limit.
Age Tax Credit 2026 — At a glance
- Single person (65+)
- €245/year off income tax
- Couple (both 65+)
- €490/year off income tax
- Age Exemption (single)
- No income tax if income under €18,000
- Age Exemption (couple)
- No income tax if income under €36,000
- How to claim
- Usually automatic if Revenue has your date of birth — check myAccount
Age Tax Credit vs. Age Exemption Limit — what is the difference
Ireland has two separate benefits for people aged 65+: the Age Tax Credit and the Age Exemption Limit. They work differently and serve different income levels:
| Benefit | How it works | Who benefits most |
|---|---|---|
| Age Tax Credit | €245 off your income tax bill each year | People with taxable income above the exemption limit |
| Age Exemption Limit | No income tax at all if income is below €18,000 (single) / €36,000 (couple) | Retired people with modest pension or investment income |
If your income is below the Age Exemption Limit, you pay no income tax — the Age Tax Credit is not needed. If your income is above the limit, you pay tax as normal but receive the €245 credit to reduce the bill.
How the Age Tax Credit reduces your tax bill — examples
Effect of the Age Tax Credit at different income levels (single person, 65+)
| Annual income | Tax before credits | Standard personal credit (€1,875) | Age Tax Credit (€245) | Income tax after all credits |
|---|---|---|---|---|
| €15,000 | €3,000 | −€1,875 | −€245 | €880 (or €0 — under exemption limit) |
| €20,000 | €4,000 | −€1,875 | −€245 | €1,880 |
| €30,000 | €6,000 | −€1,875 | −€245 | €3,880 |
| €50,000 | €15,200 | −€1,875 | −€245 | €13,080 |
At €15,000 income: if you are aged 65+ and income is under €18,000, you are fully exempt — no income tax applies. The credits are not needed. PRSI and USC may still apply on certain income types.
Other tax benefits for over-65s
- Age Exemption Limit: No income tax if income below €18,000 (single) or €36,000 (couple where both 65+)
- Marginal relief: If income exceeds the exemption limit by only a small amount, you do not immediately lose the full exemption — you pay only 40% of the excess income
- Medical card: Automatic medical card for all aged 70+ regardless of income
- Living Alone Allowance: Extra €22/week DSP payment if you live alone
- Fuel Allowance: €38/week for 28 weeks if you receive a qualifying DSP payment
- Household Benefits Package: Free electricity and gas units for qualifying over-66s
Frequently asked questions
Do I have to apply for the Age Tax Credit?
Not usually. If Revenue has your date of birth on file, the Age Tax Credit is applied automatically in the year you turn 65. Check your tax credit certificate on myAccount. If the credit is not showing, log in and add your date of birth, or complete a Form 12 tax return.
Does the Age Exemption Limit apply if only one spouse is 65+?
The full €36,000 exemption applies only if both spouses are 65 or over. If only one spouse is 65+, the individual exemption of €18,000 applies to that person's share of income. Revenue assesses the couple's combined income situation.
Do I pay PRSI after age 65?
PRSI Class A (employee) continues on employment income at any age. However, PRSI is not charged on social welfare income, pension income, or investment income for those aged 66 and over. Check your specific situation with Revenue.
Does the Age Tax Credit affect my State Pension?
No. The Age Tax Credit reduces your income tax — it has no effect on your State Pension amount. The State Pension is paid separately by DSP and is not reduced by tax credits.
What if my only income is the State Pension?
The State Pension of €299.30/week = approximately €15,563/year is below the Age Exemption Limit of €18,000. If this is your only income, you pay no income tax — the Age Tax Credit is not needed as your tax bill is already zero.
- The Age Tax Credit (€245) is separate from the Age Exemption Limit (€18,000 tax-free) — they serve different situations and both can apply.
- If your income is below €18,000 (single) or €36,000 (couple), you pay no income tax at all — the €245 credit is irrelevant in that case.
- The credit is non-refundable — if your tax bill is less than €245, it reduces it to zero but you do not receive the difference in cash.
- The Age Tax Credit reduces income tax only — PRSI and USC are charged separately (though many 66+ recipients have limited PRSI liability on pension income).
- Check myAccount to confirm the credit is applied — Revenue cannot apply it without a date of birth on file.
This page was reviewed against official Revenue.ie and Citizens Information guidance and updated to reflect 2026 Age Tax Credit rates and Age Exemption Limits.