Congratulations on your new arrival! Along with the joy of parenthood comes a range of tax credits and reliefs that many new parents in Ireland don't realise they're entitled to. From the Home Carer Credit to medical expenses relief, there's real money waiting to be claimed—you just need to know where to look.
Our tax specialists have helped hundreds of new parents discover credits they didn't know existed. The average parent we work with is owed over €1,000, with many receiving significantly more when we review their complete tax history.
📊 Key Tax Credits for Parents 2025
- Home Carer Tax Credit: €1,950 per year
- Single Person Child Carer Credit: €1,900 per year
- Incapacitated Child Credit: €3,300 per year
- Medical Expenses: 20% relief on costs
Tax Credits Available to Parents
As a new parent in Ireland, you may be entitled to several valuable tax credits depending on your family situation. Here's what's available:
Home Carer Tax Credit (€1,950)
If you're married or in a civil partnership and one of you stays at home to care for children, you may be entitled to this valuable credit worth €1,950 per year. It's designed to recognise the contribution of parents who care for children at home.
To qualify, the home carer's income must be under €7,200 (or up to €10,400 with a reduced credit). Many families where one parent works part-time or takes an extended break after having a baby qualify for this—yet most don't claim it.
Single Person Child Carer Credit (€1,900)
Single parents who are the primary carer for a qualifying child can claim the SPCCC, worth €1,900 per year. This also includes an increased standard rate tax band of €4,000, potentially saving you even more if you earn above the threshold.
The SPCCC can be backdated for up to four years. If you've been a single parent since 2021 and never claimed, you could be owed over €7,600 in this credit alone. Our guide on how much SPCCC is worth explains more.
Incapacitated Child Tax Credit (€3,300)
If your child has a permanent physical or mental incapacity that restricts their ability to support themselves, you may be entitled to this credit worth €3,300 per year. It applies regardless of your marital status and can be claimed alongside other credits.
Medical Expenses Relief for New Parents
Having a baby comes with significant medical expenses—many of which qualify for 20% tax relief. Parents can claim for:
- Hospital and consultant fees not covered by insurance
- GP visits for you, your partner, and your children
- Prescribed medications and prescriptions
- Dental treatments and orthodontics
- Physiotherapy, occupational therapy, and other approved treatments
With 20% relief, €1,000 in medical expenses returns €200 to you. New parents typically have higher medical costs in the early years—make sure you're claiming for them.
💡 Real Example
Sarah and Mark welcomed their first child in 2022. Sarah reduced her hours to care for their son. When we reviewed their tax, we found unclaimed Home Carer Credit (3 years), medical expenses, and rent credit. Total refund: €4,890.
Maternity, Paternity, and Parent's Benefit
These benefits are paid by the Department of Social Protection and are taxable income. Here's what you need to know:
- Maternity Benefit: Taxable, but no USC or PRSI deducted
- Paternity Benefit: Also taxable income
- Parent's Benefit: 9 weeks leave, taxable
The way tax is collected on these benefits can sometimes result in overpayment—especially if your employer topped up your salary during leave. Our specialists review these situations and identify any refunds owed.
Other Reliefs Parents Often Miss
Rent Tax Credit
If your family rents, the rent tax credit is worth up to €1,000 per year. This is separate from any parental credits and can be claimed alongside them.
Work Expenses
Depending on your job, you may be entitled to flat rate expenses or relief on work-related costs. Nurses, teachers, healthcare workers, and many other professions have specific allowances.
Working From Home Relief
If you've worked from home since having your baby, you may qualify for e-Working relief on electricity, heating, and broadband costs.
How Much Could Your Family Claim?
Why Let Us Handle Your Claim?
New parents have enough on their plate. Our specialists take the stress out of claiming your tax reliefs:
- Complete review: We examine all four years and every relief you might qualify for
- Expert knowledge: We know exactly which parent credits apply to your situation
- Everything handled: No paperwork, no calls—we do it all
- No refund, no fee: You only pay if we get you money back
See how our process works or check our transparent fees.
Find Out What Your Family Is Owed
Our experts will review your complete tax history and find every credit you're entitled to.
Start Your Free Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Is there a tax credit just for having a baby?
There's no automatic "baby credit," but having a child opens up other credits like the Home Carer Credit (if one parent stays home) or SPCCC (for single parents). You can also claim medical expenses relief on birth-related costs.
Can both parents claim the Home Carer Credit?
No, only one spouse or civil partner can claim the Home Carer Credit. It's designed for couples where one person stays home to care for dependents while the other works.
How far back can I claim parent credits?
You can claim for up to four years. If you became eligible for the Home Carer Credit or SPCCC in 2021 and never claimed, we can recover all four years for you.
Is Maternity Benefit taxed?
Yes, Maternity Benefit is taxable income. However, the way tax is collected sometimes results in overpayment. Our review includes checking these situations for potential refunds.