Budgeting and Tax

Tax Relief for Parents

Single Person Child Carer Credit

If you are parenting alone and paying tax you may be eligible for an additional tax credit. The credit is called the Single Person Child Carer Credit (SPCCC). The amount of the credit is currently €1,650 per year. This will reduce the tax you pay by €31.73 per week.

You may also be entitled to an increased rate band of €4,000. This means you can earn an additional €4,000 at the 20% tax rate. If you are due the SPCCC, then you are automatically due the increased rate band.

  • Only one parent can claim the SPCCC, and that person must be caring for an eligible child or children alone, and cannot be cohabiting.
  • You cannot claim if you are being jointly assessed for tax, if you are married (unless separated), co-habiting or in a civil partnership.
  • The SPCCC cannot be claimed in the year of bereavement if your spouse or civil partner has died but you may claim the SPCCC for the following tax years, if you meet the qualifying criteria. It can, however, be claimed in the year of separation if you are not assessed for tax yourself because your tax was jointly assessed. There is more information about that on Revenue’s website here.

Can you give up your SPCCC claim to a secondary claimant?

You can give up your right to the SPCCC if you are the primary claimant. This is known as surrendering your claim. You may choose to do this because you do not have sufficient taxable income to use the credit fully.

Another person, the second parent or guardian (the secondary claimant), will then be entitled to claim the SPCCC instead, provided they meet the qualifying criteria for secondary claimants.

You may claim SPCCC again at a later date if you are still a qualifying primary claimant and the tax credit will be restored to you at the beginning of the tax year following the withdrawal.

Further information on the difference between a primary and secondary claimant is available here.

There is more information on this tax credit and how to apply on the Revenue website.

Budget 2023

The following taxation measures were announced on September 27th, 2022, as part of Budget 2023, effective from 1st January 2023:

  • The Personal, Employee and Earned Income tax credits will increase by €75 to €1,775 per year.
  • No increase in Single Person Child Carer Credit which remains at €1,650 per year.
  • Single, widowed or surviving civil partners will have an increase of €3,200 in the income tax standard rate band cut-off point from €36,800 to €40,000. This means that anyone earning up to €40,000 will pay tax at the standard 20% rate. Any income over €40,000 will be taxed at the higher 40% rate.
  • Those qualifying for the Single Person Child Carer Credit will have an increase of €3,200 in the income tax standard rate band cut-off point from €40,800 to €44,000.
  • The ceiling of the 2% USC band will increase by €1,625 to €22,920. The change was made to ensure the salary of a full-time worker on the minimum wage will remain outside the higher rates of USC. The USC exemption for medical card holders stays in place.