Alyssa Lane
In Ireland, taxpayers can claim tax relief on medical expenses, including health insurance premiums. This is known as Tax Relief at Source (TRS) and is a tax credit offered by the government to reduce the financial burden of private health insurance. Since 2014, those with private medical insurance have been eligible for a 20% tax deduction from their full gross premium. From 1 January 2024, the TRS rate will decrease to 19%, resulting in a slight increase in net premiums for customers. Individuals can claim tax relief on medical expenses they pay for themselves or for someone else, including reasonable travel and accommodation costs for treatment outside of Ireland. It is important to note that tax relief is not applicable to cosmetic surgery unless it is required due to a personal injury, disease, or congenital abnormality. Additionally, routine eye and dental treatments are excluded from tax relief eligibility.
| Characteristics | Values |
|---|---|
| What is it? | A tax credit given by the Irish government to ease the financial burden of private health insurance |
| Who is eligible? | Those who privately purchase individual health insurance policies |
| Who is not eligible? | Employees who participate in group health insurance schemes at work |
| How much relief is provided? | 20% of the gross premium (capped at €1,000 per adult and €500 per child from 2014 onwards) |
| When is it provided? | Since 2014 |
| Are there any changes? | From 1 January 2024, the TRS will reduce from 20% to 19% for new and renewed policies |
| What expenses are covered? | Medical treatment, travel and accommodation for treatment outside Ireland, nursing home expenses, speech and language therapy for children, educational psychological assessments for children, treatment from a psychologist or psychotherapist, gluten-free food for coeliac disease, diabetic products for diabetes |
| What expenses are not covered? | Cosmetic surgery (unless due to personal injury, disease or congenital abnormality), routine eye and dental treatment |
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What You'll Learn
Tax relief on medical expenses
In Ireland, you can claim tax relief on medical expenses that you pay for yourself or for someone else. The relief is given at the standard rate of 20%. However, tax relief on nursing home expenses can be claimed at your highest rate of tax. This means that the portion of your income that is taxable at your highest rate is reduced.
To qualify for relief, your healthcare must be carried out by, or recommended by, a registered practitioner such as a doctor or dentist. You can check the Irish Medical Council register or the Dental Council of Ireland register. If you have private health insurance, you can claim tax relief on the portion of those qualifying expenses not covered by your insurer. You can claim tax relief on the cost of medical treatment you receive outside Ireland, provided the healthcare provider is entitled to practise in the country where the care is provided. If the qualifying healthcare is only available outside Ireland, you can also claim for reasonable travel and accommodation expenses.
You can claim tax relief on a wide range of medical expenses, including:
- Premiums paid for health insurance
- Speech and language therapy for a child under 18 or in full-time education (carried out by a qualified speech and language therapist)
- Educational psychological assessments for a child under 18 or in full-time education (carried out by an educational psychologist)
- Treatment from a psychologist or psychotherapist
- Nursing home expenses (if it provides 24-hour on-site nursing care)
- Travel and accommodation expenses for healthcare that is not available in Ireland
- Orthoptic or similar treatment prescribed by a doctor
You cannot claim tax relief on the following types of expenses:
- Routine ophthalmic (eye) treatment, such as sight tests, glasses or contact lenses
- Routine dental treatment
- Cosmetic surgery or procedures, unless required to correct a health issue
- Guide and assistance dog costs
- A wheelchair or wheelchair lift (no relief is available for any building work required to install the lift)
- A computer required to help a person with a severe disability to communicate
It is worth noting that the list of treatments and appliances that qualify for tax relief is subject to change. If you are undergoing a new procedure or availing of a new appliance, it is recommended to check whether you can claim tax relief.
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$92.95
Tax relief on health insurance premiums
In Ireland, tax relief is available for premiums paid for private health insurance. This is included in the amount you pay, meaning you do not need to make a separate claim for relief. Since 2014, private medical insurers have deducted 20% tax from the full Gross Premium on behalf of the Revenue Commissioner. From 1 January 2024, this rate will be reduced to 19% for new and renewed policies.
To qualify for tax relief, your healthcare must be carried out by, or recommended by, a registered practitioner such as a doctor or dentist. You can check the Irish Medical Council register or the Dental Council of Ireland register.
You can also claim tax relief on medical expenses that you pay for yourself or for someone else. Revenue occasionally adds to the list of treatments and appliances that qualify for tax relief. As of January 2023, you can claim tax relief on the following:
- Reasonable travel and accommodation expenses for qualifying healthcare received outside of Ireland.
- Expenses for one accompanying person if necessary for medical reasons. In special cases, the expenses of both parents may be allowed if their child needs to travel for treatment.
- Orthoptic treatment or similar treatment prescribed by a doctor for eye disorders.
- Expenses for a nursing home if it provides 24-hour on-site nursing care.
- Gluten-free food if you have coeliac disease.
- Diabetic products if you have diabetes.
You cannot claim tax relief for routine eye or dental treatment, or for cosmetic surgery unless it is required due to a personal injury, disease, or congenital abnormality.
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Claiming tax relief on employer-paid insurance
If your employer pays your health insurance premium, this is considered a Benefit in Kind by Revenue, meaning you will be taxed on the gross value of the policy. However, you can claim tax relief on this amount. The relief is given at a rate of 20% of the cost, up to a maximum of €1,000 per adult and €500 per child (under 21 years old). It's important to note that if your employer only pays a percentage of your policy cost, your tax relief claim is restricted to that percentage.
To claim tax relief on employer-paid insurance, you must file an annual tax return and include details of the gross premium paid by your employer (on which you have been charged Benefit in Kind). This is your first time claiming tax relief on employer-paid insurance, and your employer has paid for your health insurance in previous years, you can go back and claim tax relief for up to four years.
When claiming tax relief, it's important to keep in mind that you can only claim relief on medical insurance premiums. This includes expenses for medical treatment, travel, and accommodation if the qualifying healthcare is only available outside of Ireland. You can also claim tax relief on certain medical expenses, such as speech and language therapy for children under 18 or in full-time education, educational psychological assessments for children under 18 or in full-time education, and expenses for a nursing home if it provides 24-hour on-site nursing care. However, it's important to note that you cannot claim tax relief on routine ophthalmic or dental treatment.
If you are a PAYE (Pay As You Earn) taxpayer, you can conveniently claim tax relief online using myAccount. Remember, thousands of people in Ireland miss out on claiming tax relief on their health insurance every year, so don't forget to claim what you are owed!
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Tax relief on treatments and appliances
In Ireland, you can claim tax relief on medical expenses that you pay for yourself or for someone else. This includes the cost of treatments and appliances. Here are some key points about tax relief on treatments and appliances in Ireland:
Treatments
To qualify for tax relief on medical treatments, the treatment must be carried out by, or recommended by, a registered practitioner such as a doctor or dentist. You can check the Irish Medical Council register or the Dental Council of Ireland register to verify if a practitioner is registered. Examples of treatments that qualify for tax relief include:
- Speech and language therapy for a child under 18 or in full-time education, when carried out by a qualified speech and language therapist.
- Educational psychological assessments for a child under 18 or in full-time education, when carried out by an educational psychologist.
- Treatment from a psychologist or psychotherapist.
- Orthoptic or similar treatment prescribed by a doctor for eye disorders, such as squints.
- Fertility treatments from the past 4 years.
- Medical treatment received outside Ireland, provided the healthcare provider is entitled to practise in that country.
Appliances
You can claim tax relief on the cost of buying and maintaining medical appliances that you use on the advice of a medical practitioner. For example, if you use a dialysis machine at home, you can claim additional relief. Additionally, if you have a physical or mental disability, you may be eligible for a Value-Added Tax (VAT) refund on certain aids and appliances that you need. This refund may also be available to someone else who pays for your aids or appliances. However, VAT refunds do not apply to services or the rental of aids and appliances. To claim a VAT refund, you must provide medical evidence of your disability and ensure that the aid or appliance is for your exclusive use.
It is important to note that the list of treatments and appliances eligible for tax relief is subject to change, and you should check the Revenue website or seek professional advice for the most up-to-date information.
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Tax relief on medical expenses outside Ireland
In Ireland, tax relief is available on medical expenses incurred outside the country. This applies to medical treatment received abroad, as well as reasonable travel and accommodation expenses if the qualifying healthcare is only available outside Ireland. The healthcare provider must be entitled to practise in the country where the care is provided.
To claim tax relief on medical expenses incurred outside Ireland, individuals must meet certain conditions. Firstly, the healthcare must be carried out by, or recommended by, a registered practitioner such as a doctor or dentist. Individuals can refer to the Irish Medical Council register or the Dental Council of Ireland register to verify the credentials of the healthcare provider. Secondly, there is a time limit for claiming tax relief. Claims must be made within four years following the year in which the healthcare expenses were paid.
The process for claiming tax relief on medical expenses incurred outside Ireland involves providing the necessary documentation and submitting a claim to the relevant authority. Individuals may need to submit receipts or other proof of their medical expenses, such as a completed Form Med 2 for dental expenses. Claims can be made online through the Revenue website or offline by completing a paper Form 12 and returning it to the local Revenue office.
It is important to note that not all medical expenses are eligible for tax relief. Routine eye and dental treatments, such as sight tests, glasses, and contact lenses, and routine dental care, are generally excluded from tax relief. However, certain specific treatments, such as orthoptic treatment for eye disorders prescribed by a doctor, are eligible. Additionally, cosmetic surgery costs are not eligible for tax relief unless they are required due to a personal injury, disease, or congenital abnormality.
Tax relief on medical expenses is typically given at the standard rate of 20%. However, there are exceptions, such as nursing home expenses, which can be claimed at the individual's highest rate of tax, resulting in a larger tax deduction. Individuals with private health insurance can claim tax relief on qualifying medical expenses not covered by their insurer. Overall, tax relief on medical expenses outside Ireland provides financial support to individuals seeking necessary healthcare abroad, helping to offset some of the associated costs.
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Frequently asked questions
Medical insurance relief in Ireland refers to tax relief on health insurance premiums. This is a tax credit offered by the government to reduce the financial burden of private health insurance.
In Ireland, individuals who have private medical insurance are eligible for a 20% tax deduction on their gross premium. This tax relief is provided directly by the insurance company, reducing the premium amount payable.
Yes, you can claim tax relief on medical expenses that you pay for yourself or for someone else. This includes expenses for medical treatments, appliances, and travel costs for healthcare sought outside of Ireland.
To claim medical insurance relief in Ireland, you can fill out an application form provided by the Irish Tax Rebates. You may be required to submit relevant receipts and documents as proof of your medical expenses. It is important to note that the eligibility criteria and processes may vary, so it is recommended to seek official guidance for a comprehensive understanding.
