Income tax credit for people aged 65 and over
Age Tax Credit Ireland 2026
People aged 65 or over in Ireland receive an extra €245 income tax credit per year — €490 for a couple where both are 65 or over. This stacks on top of all your other credits. Separately, if your income is below €18,000 (single) or €36,000 (couple where both are 65+), you pay no income tax at all under the Age Exemption Limit. Understanding both benefits and how they interact is important for tax planning in retirement.
Age Tax Credit 2026 — At a glance
- Single person aged 65+
- €245/year off income tax
- Couple (both aged 65+)
- €490/year (€245 per person)
- Age Exemption Limit (single, 65+)
- No income tax if total income under €18,000
- Age Exemption Limit (couple, both 65+)
- No income tax if total income under €36,000
- Automatic?
- Yes, if Revenue has your date of birth — check myAccount
- Applies from
- The tax year in which you turn 65
What is the Age Tax Credit?
The Age Tax Credit is a modest but automatic additional income tax credit for people aged 65 or over in Ireland. It reduces your income tax bill by €245 per year — or €490 if you are jointly assessed as a couple and both partners have turned 65.
The credit applies from the tax year in which you reach age 65. You do not have to wait until you have been 65 for a full calendar year — turning 65 on any date within the tax year (including 31 December) entitles you to the full credit for that year.
The Age Tax Credit is separate from the Age Exemption Limit, which is a far more significant benefit for people with lower retirement incomes. Understanding both — and knowing which one applies to your situation — is the starting point for managing your tax in retirement.
Age Tax Credit vs. Age Exemption Limit — key differences
These two benefits are often confused. They serve different purposes and apply at different income levels.
| Benefit | How it works | Value | Who it applies to |
|---|---|---|---|
| Age Tax Credit | Reduces your income tax bill by €245/year (€490 couple) | €245 per person per year | Everyone aged 65+ with any income tax liability |
| Age Exemption Limit | Removes income tax entirely if total income is below the threshold | €18,000 (single) / €36,000 (couple both 65+) tax-free | People aged 65+ with modest incomes — typically retired on State Pension + small occupational pension |
| Marginal Relief | If income slightly exceeds the exemption limit, you pay 40% of the excess only — no cliff edge | Reduces tax on income just above the exemption limit | People aged 65+ whose income is just above the exemption limit |
In practice:
- If your income is below €18,000 (single 65+): you pay no income tax. The Age Tax Credit is irrelevant — your tax is already zero.
- If your income is between €18,000 and roughly €22,000 (single 65+): marginal relief applies — you pay 40% of the income above €18,000, reduced by your credits including the €245 Age Tax Credit.
- If your income is above the marginal relief zone: normal progressive tax applies, reduced by the €245 credit along with all your other credits.
Worked examples — how the credit and exemption interact
Example 1 — State Pension only (single person aged 68)
Rosa retired from cleaning work in Cork. Her only income is the State Pension of approximately €15,563/year (€299.30/week).
- Income (€15,563) is below the Age Exemption Limit (€18,000)
- Result: no income tax — she is fully exempt
- The Age Tax Credit (€245) is irrelevant in this case — her tax bill is already zero
- PRSI: she is 68, so she is exempt from PRSI on the State Pension income
- USC: the State Pension is exempt from USC for those over 70; for ages 65–69, reduced rates may apply
Example 2 — State Pension plus occupational pension (single person aged 67)
Mikhail worked as a security guard and retired with a small occupational pension. He receives €299.30/week State Pension + €150/week occupational pension = approximately €23,358/year total.
- Income (€23,358) exceeds the Age Exemption Limit (€18,000) and the marginal relief zone
- He pays income tax on his income above the standard rate cut-off at 20%, reduced by his credits
- Credits: Personal Tax Credit (€2,000) + Age Tax Credit (€245) = €2,120 in credits
- Approximate income tax: around €2,672 − €2,120 = €552/year (rough calculation, excluding PRSI/USC)
- The Age Tax Credit saves him €245 in income tax compared to not having it
Example 3 — Jointly assessed couple, both aged 67 and 65
Piotr (67) and Maria (65) are jointly assessed. Piotr receives the State Pension (€15,563/year). Maria works part-time earning €12,000/year. Total combined income: €27,563.
- Both are aged 65+ — joint exemption limit is €36,000
- Combined income (€27,563) is below €36,000
- Result: no income tax on their combined income
- Age Tax Credit: not needed (tax already zero), but Revenue applies €490 (€245 each) to their joint certificate regardless
Example 4 — Marginal Relief in action
A single person aged 66 has total income of €20,000 per year from pension income.
- Income (€20,000) exceeds the Age Exemption Limit (€18,000) by €2,000
- Under marginal relief: income tax = 40% × €2,000 = €800 (before credits)
- After Personal Tax Credit (€2,000): the credits exceed the tax — income tax is €0
- Even without the Age Tax Credit, this person pays no income tax due to the Personal Tax Credit
- The Age Tax Credit (€245) would further reduce any remaining liability if it existed
- Key takeaway: at €20,000, you pay very little or no income tax due to marginal relief and credits combined
How to check and claim the Age Tax Credit
Is it already applied?
If Revenue has your date of birth on file, the Age Tax Credit is applied automatically in the year you turn 65. To check:
- Log in to Revenue myAccount
- Go to PAYE Services and select Manage tax credits or Review your Tax Credit Certificate
- Look for “Age Tax Credit” or “Age Credit” in the list — it should show €245
If the credit is not showing
Either Revenue does not have your date of birth on file, or it has not yet been processed. To add it:
- In myAccount, go to Personal Details and enter or confirm your date of birth
- Revenue will automatically add the Age Tax Credit once your age is confirmed
- Alternatively, submit a Form 12 (PAYE tax return) including your date of birth
- Or contact Revenue directly by phone on 01 738 3636 or through secure online message in myAccount
For self-employed people
Claim the Age Tax Credit on your annual Form 11 return through ROS. It appears in the Tax Credits section. Ensure it is claimed in every year from age 65 onwards.
Back-claiming if the credit was missed
If you turned 65 in a prior year but the credit was never applied, you can back-claim for up to four prior tax years. In myAccount, use the Review your tax function to submit an amended return for each missed year. Revenue will recalculate and issue any refund due.
Other tax benefits and payments for over-65s in Ireland
The Age Tax Credit is one of several benefits available to older residents. Many are automatic or can be claimed easily:
| Benefit | Value (2026) | Who provides it | Automatic? |
|---|---|---|---|
| Age Tax Credit | €245/year (€490 couple) | Revenue — income tax reduction | Yes, if DOB on file |
| Age Exemption Limit | No tax under €18,000 (€36,000 couple) | Revenue — income tax exemption | Yes, if DOB on file and aged 65+ |
| Medical Card (age 70+) | Free GP, hospital and prescriptions | HSE | Apply to your HSE area |
| Living Alone Allowance | €22/week extra | DSP | Must apply via DSP |
| Fuel Allowance | €38/week for 28 weeks/year | DSP | Must apply via DSP; qualifying payment required |
| Household Benefits Package | Free electricity and gas units | DSP | Must apply via DSP (age 70+ or qualifying recipient) |
| Free Travel Pass | Free travel on public transport nationwide | DSP | Apply when reaching qualifying age or receiving qualifying payment |
| State Pension | €299.30/week (contributory, full rate) | DSP | Apply online or via Intreo — not automatic |
PRSI and USC for people aged 65 and over
The Age Tax Credit reduces income tax only. Two other charges — PRSI and USC — are calculated separately and have their own age-related rules:
PRSI:
- PRSI Class A (employee) continues on employment income at any age, including after 65
- From age 66, PRSI is no longer charged on the State Pension, social welfare income, or investment income
- If you are employed after 66, PRSI Class A still applies on wages
USC (Universal Social Charge):
- USC applies to most income at any age
- For people aged 70 or over with total income under €60,000, a reduced maximum USC rate of 2% applies (instead of the standard higher rates)
- Medical card holders of any age with income under €60,000 also pay a maximum 2% USC rate
- The State Pension is subject to USC unless you are a medical card holder under the relevant income threshold
Immigrants and people who came to Ireland after age 60
If you are an immigrant aged 65 or over living in Ireland and paying income tax here, you are entitled to the Age Tax Credit. Your nationality does not matter — what matters is ordinary residence in Ireland for tax purposes.
Common situations for immigrants aged 65+ in Ireland:
- Working past 65: you receive the Age Tax Credit on top of your standard PAYE credits. The credit should appear on your tax certificate automatically once Revenue has your DOB.
- State Pension eligibility: the Irish contributory State Pension requires PRSI contributions. If you came to Ireland after working elsewhere in the EU, your EU PRSI contributions may be combined under EU social security rules. Non-EU immigrants may not qualify for the contributory pension — but the non-contributory pension may be available on means-tested grounds.
- Back-claiming: if you turned 65 while working in Ireland and the Age Tax Credit was not applied, you can back-claim for up to four years. For someone who turned 65 in 2022, this could mean up to €980 in refunds (€245 × 4 years).
Budget 2025 — what changed for over-65s
Budget 2025 did not change the Age Tax Credit amount (it remains €245). However, several other changes affect older taxpayers in Ireland:
- The Personal Tax Credit increased from €1,775 to €2,000 — this applies to all taxpayers including over-65s, stacking with the Age Tax Credit
- The Employee Tax Credit increased from €1,775 to €2,000 — benefiting working over-65s
- The State Pension was increased in Budget 2025 — check with DSP for the current weekly rate
- The Age Exemption Limits were not changed in Budget 2025 (still €18,000 single / €36,000 couple)
- The USC rate structure was adjusted — verify the current USC bands on Revenue.ie
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 the Age Tax Credit in Ireland?
The Age Tax Credit is an additional income tax credit of €245 per year for people aged 65 or over in Ireland. A jointly assessed married couple or civil partners where both are aged 65 or over receive €490 per year (€245 each). The credit is in addition to all other credits you already hold and applies from the tax year in which you turn 65.
What is the Age Exemption Limit and how is it different from the Age Tax Credit?
The Age Exemption Limit is a separate, more valuable benefit. If you are aged 65 or over and your total income is below €18,000 per year (single person) or €36,000 per year (married couple where both are 65+), you pay no income tax at all. The Age Tax Credit (€245) applies to those above the exemption limit — it reduces the tax bill but does not eliminate it.
How much is the Age Tax Credit in 2026?
€245 per individual per year. A jointly assessed couple where both are aged 65 or over receive €490 per year. The credit is non-refundable — it reduces your income tax to zero but cannot create a cash refund if you have no tax liability.
Is the Age Tax Credit automatic?
Usually yes, if Revenue has your date of birth on file. Revenue applies the credit automatically in the year you turn 65. To verify, check your tax credit certificate in myAccount at Revenue.ie. If the credit is not showing, log in to myAccount and update your date of birth in your personal details, or complete a Form 12 tax return.
Do I pay income tax on my State Pension if I am over 65?
The State Pension is technically taxable income. However, if it is your only income and you are aged 65+, you likely fall below the Age Exemption Limit (€18,000 for single persons) and pay no income tax at all. The current State Pension is approximately €299.30 per week (approximately €15,563 per year), which is below the €18,000 exemption threshold.
What is marginal relief for people aged 65+?
If your income is just above the Age Exemption Limit, you do not immediately face full income tax. Marginal relief means you pay only 40% of the amount your income exceeds the exemption limit. This prevents a sharp tax cliff at the €18,000 boundary. For example, if a single person aged 65+ earns €20,000, the excess over €18,000 is €2,000, and income tax before credits is €800 (40% × €2,000).
Can immigrants over 65 claim the Age Tax Credit?
Yes. The Age Tax Credit is available to all people who are ordinarily resident in Ireland for tax purposes and who are aged 65 or over. Nationality is not a factor. If you pay income tax in Ireland and are 65+, you are entitled to the credit.
What other tax reliefs are available to people over 65 in Ireland?
Several. The Age Exemption Limit (no income tax below €18,000 single / €36,000 couple). Marginal relief if just above the threshold. Automatic medical card for all aged 70+. Living Alone Allowance (€22/week from DSP). Fuel Allowance (€38/week for 28 weeks). Household Benefits Package (free electricity and gas units). Free Travel Pass.
What happens to the Age Tax Credit when one spouse in a couple turns 65?
In a jointly assessed couple, the Age Tax Credit of €245 applies to the spouse who has reached 65. The couple receives €245 per year for the qualifying spouse. The full €490 (€245 per person) applies only when both spouses are aged 65 or over. Revenue applies the credit automatically based on the date of birth on file.
Does the Age Tax Credit affect PRSI or USC?
No. The Age Tax Credit reduces income tax only. PRSI and USC are separate charges calculated independently. People aged 66 or over are exempt from PRSI on most income types including State Pension and other social welfare income, but PRSI Class A continues on employment income at any age. USC applies to most income at any age, though there are reduced USC rates for people over 70 with income under €60,000.
- The Age Tax Credit (€245) and the Age Exemption Limit (no tax under €18,000) are different things. If your income is below €18,000, 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, the credit reduces it to zero, but you do not receive the remainder in cash.
- The credit applies from the year you turn 65 — not the year after. Even if your birthday is on 31 December, you receive the full credit for that tax year.
- Revenue cannot apply the credit without a date of birth on file. Always check your tax credit certificate in myAccount to confirm the credit is actually showing.
- Immigrants working in Ireland past age 65 are entitled to the credit — nationality is irrelevant. If you are ordinarily resident and paying income tax in Ireland, you qualify.
- The credit reduces income tax only — PRSI and USC are separate and governed by their own age-related rules (especially the 66+ PRSI exemption on non-employment income and the 70+ reduced USC rate).
Related guides
This page was reviewed against official Revenue.ie and Citizens Information guidance and updated to reflect 2026 Age Tax Credit rates, Age Exemption Limits, and applicable PRSI and USC rules for people aged 65 and over.
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.