💼 Redundancy Tax Ireland: Complete Guide 2025
Made redundant? Learn how redundancy payments are taxed, what's tax-free, and how to minimise your tax bill. Plus claim back overpaid tax.
💡 Quick Answer
Statutory redundancy payments are completely tax-free. Ex-gratia (additional) payments have a basic exemption of €10,160 plus €765 per complete year of service. With SCSB relief, your total tax-free amount could be significantly higher. Many people overpay tax on redundancy - claim it back!
💰 What's Tax-Free on Redundancy?
✅ Always Tax-Free
- Statutory redundancy (2 weeks pay per year + 1 week)
- Pay in lieu of notice (if specified in contract)
- Holiday pay owed to you
⚠️ May Be Taxable
- Ex-gratia payments above exemption
- Enhanced redundancy above statutory
- Compensation payments
📊 Calculating Your Tax-Free Amount
Basic Exemption Formula:
€10,160 + (€765 × Complete Years of Service)
Example: 10 Years Service
| Basic exemption: | €10,160 |
| Service years (10 × €765): | €7,650 |
| Total Tax-Free: | €17,810 |
📈 SCSB (Standard Capital Superannuation Benefit)
If you've been a member of a pension scheme with your employer, you may qualify for enhanced tax-free relief under SCSB:
🏠 Claim Your Rent Tax Credit
Renting? Claim up to €1000/year (or €2000 for couples). Claim 2022-2025!
✓ Free assessment • ✓ No win, no fee • ✓ Takes 60 seconds
Start Your Free Claim →SCSB Calculation:
(Average Annual Pay × Years of Service ÷ 15) - Lump Sum from Pension
SCSB can significantly increase your tax-free amount, especially for long-service employees in pension schemes.
🔄 Claiming Tax Back on Redundancy
If you received a redundancy payment and paid tax on it, you may be entitled to a refund if:
- Your employer deducted emergency tax from the payment
- You didn't work for the full year (unused tax credits)
- SCSB relief wasn't applied correctly
- Your basic exemption wasn't fully used
- You have other unclaimed tax credits
💚 Let MyTaxRebate.ie Review Your Redundancy
Redundancy tax is complex. Our experts ensure you receive all tax-free entitlements and claim back any overpaid tax.
For the most up-to-date official guidance, you can always check Revenue.ie directly.
❓ Frequently Asked Questions
How much is the rent tax credit in 2025?
For 2025, the rent tax credit is €1000 for single people, or €2000 for couples.
Can I claim rent tax credit for previous years?
Yes! Claim for 2022-2025. 2024/2025: €1000/€2000. 2022/2023: €500/€1000.
What documents do I need for the rent tax credit?
You need proof of rent payments and your landlord's name and address.
Can students claim the rent tax credit?
Yes, students paying qualifying rent can claim if they meet eligibility criteria.
📋 Additional Rent Tax Credit Information
Understanding the full scope of the Rent Tax Credit can help you maximise your claim. Here are some additional points many renters overlook:
Multiple Tenancy Situations
If you've lived in multiple rental properties during the tax year, you can claim for each property where you paid qualifying rent. Keep records of all tenancy agreements and proof of payment for each address. The total credit is still capped at €1,000 (single) or €2,000 (married), but you can combine claims from different properties.
Backdating Your Claim
You can claim the Rent Tax Credit for up to 4 previous tax years. If you've been renting since 2021 and haven't claimed, you could be owed up to €4,000 (single) or €8,000 (married couple) in unclaimed credits. Many renters don't realise they can backdate claims, leaving significant money unclaimed.
Common Mistakes to Avoid
- Not keeping receipts: Always get written confirmation of rent payments
- Wrong property type: The property must be your principal private residence
- Missing deadlines: Claims must be submitted within the 4-year window
- Not including all payments: Include all qualifying rent payments, including deposits used as final month's rent
How MyTaxRebate.ie Can Help
Our expert team reviews your complete rental history to ensure you claim every euro you're entitled to. We handle all the paperwork with Revenue, verify your eligibility, and typically achieve higher refunds than DIY claims because we know exactly what documentation Revenue requires.
