Tax Relief on Nursing Home Fees Ireland: Nursing Home and Carer Relief
Many families paying for a parent's nursing home or home care don't realise they can claim a significant portion back in tax relief. Qualifying nursing-home expenses can be relieved at the individual's marginal rate — up to 40% — when the home provides 24-hour on-site nursing care and you paid the expense yourself. Private home-care costs can also qualify for relief at up to 40%, subject to Revenue's employing-a-carer conditions. For Fair Deal, only the amount you pay yourself is claimable; the HSE-funded share is not.
What Qualifies for Tax Relief
You can claim relief on:
- Nursing home fees — fees you pay for a nursing home that provides 24-hour on-site nursing care, including a Fair Deal personal contribution you pay yourself
- Private home care costs — hourly carers, live-in carers, or private top-up hours you pay yourself for a person who is totally incapacitated due to physical or mental infirmity, where Revenue's employing-a-carer conditions are met. HSE-funded amounts do not qualify, and the qualifying cost is capped at €75,000 per incapacitated person
- Other health expenses — qualifying hospital services may be claimable under Revenue's separate health-expenses rules, generally at the standard 20% rate rather than the nursing-home rate
Revenue's rule is that the person who paid the qualifying expense claims it. If you're paying your parent's nursing home contribution or funding their private home care, you claim the amount you paid on your own tax return.
How Much Can You Save
Tax relief is given at your marginal rate:
- 40% rate taxpayer: Up to €40 of relief for every €100 of qualifying cost
- 20% rate taxpayer: Up to €20 of relief for every €100 of qualifying cost
For nursing-home expenses, the relief is calculated as a deduction from taxable income. For employing a carer, the qualifying cost is capped at €75,000 per incapacitated person, and you must have paid tax in the relevant year. For a family paying €1,000 per week for private nursing home care (€52,000 annually), a 40% taxpayer could receive up to €20,800 per year if the fees qualify and there is sufficient tax liability.
Even families on Fair Deal benefit. If your parent's assessed contribution is €400/week (€20,800/year), you can claim relief on that amount if you're covering it yourself; the HSE-funded portion cannot be claimed.
Revenue Form HK1
Claims are made through the Income Tax Return in Revenue's myAccount or ROS. Revenue may require Form HK1 (Claim for an Allowance for Employing a Carer) to support a qualifying home-care claim.
What You Need to Submit
- The nursing home resident's PPS number and the nursing home's name
- Total qualifying fees paid during the tax year
- Receipts or invoices confirming payment
- Any amounts paid by the HSE, an insurer, or another source, which must be deducted
For home care, you'll need:
- The care provider or agency's details and the cost you paid after any HSE payments
- Your share of the cost if more than one person paid
- Receipts confirming payment and any medical evidence Revenue requests to establish total incapacity
How to File
Via myAccount (PAYE workers):
- Log in to Revenue myAccount
- For a current-year claim, choose Manage your tax for the current year → Add new credits → select Health expenses or Employing a Carer
- For a previous-year claim, choose Review your tax for the previous 4 years → request a Statement of Liability → Complete Income Tax Return → select the relevant category
- Complete and submit the return; retain receipts (Revenue may request them)
Via ROS (self-employed):
- Complete Form 11 annual return
- Complete the relevant health-expenses or employing-a-carer section
- Retain receipts and any Form HK1 documentation for 6 years
You can claim for the current year and up to 4 previous years if you haven't already claimed.
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Common Mistakes to Avoid
- Don't claim costs covered by Fair Deal's state contribution — only the resident's personal share qualifies
- Don't forget to claim if you pay on behalf of a parent — you claim it, not them
- Keep all receipts for 6 years — Revenue can audit at any time
- Claim in the correct person's name — if multiple siblings contribute, each claims their own share
Combining with Other Supports
Tax relief stacks with other state supports:
- Your parent can receive Fair Deal funding AND you claim relief on the personal contribution
- You can receive Carer's Allowance AND claim relief on private care costs you pay
- HSE Home Support hours are free, but private top-up hours you fund may qualify for relief if Revenue's conditions are met
For families navigating the full financial picture — from Carer's Allowance through to Fair Deal and tax relief — our Dementia Care in Ireland guide includes a Revenue Tax Relief Toolkit with pre-filled Form HK1 guidance.
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Download the Dementia Care in Ireland: Services, Support and Funding — Quick-Start Checklist — a printable guide with checklists, scripts, and action plans you can start using today.