Section 467 Tax Relief for Home Care in Ireland: How to Claim Up to €75,000

How Section 467 Tax Relief Works

When HSE Home Support hours are capped or delayed by staffing shortages — which is common — families often top up with private home care at €30 to €35 per hour. Under Section 467 of the Taxes Consolidation Act 1997, you can claim tax relief on those private care costs if the person receiving care is "totally incapacitated" by old age, infirmity, or physical or mental disability.

The relief works as a deduction from your taxable income, not a tax credit. This means it is relieved at your marginal rate — either 20% or 40%. At the higher rate, a family spending €75,000 per year on private care would save €30,000 in tax. That is a significant offset, and many families who qualify do not claim it because they do not know it exists.

The Annual Cap and How Siblings Share It

The maximum deduction is capped at the lower of the actual cost incurred or €75,000 per year, per incapacitated person. If multiple family members contribute to the care costs, the €75,000 limit is shared proportionally based on each person's financial contribution.

For example, if two siblings pay a combined €84,000 for a parent's care — one paying €36,000 and the other paying €48,000 — the total claim is capped at €75,000. The first sibling can deduct €32,143 (their proportional share of the cap), and the second can deduct €42,857. Each claims at their own marginal tax rate.

Unused relief cannot be carried forward. If you pay €20,000 in care costs one year and €90,000 the next, you cannot apply the €55,000 of unused cap from year one to year two.

Who Qualifies as "Totally Incapacitated"

The qualifying test is whether the person is "totally incapacitated" by old age, infirmity, or disability. The test is fact-specific, so do not treat an HSE home support allocation as automatic proof of eligibility.

Keep the GP's letter and the HSE care needs assessment on file, and check Revenue's current requirements before claiming.

How to File the Claim

Claims are filed through Revenue's myAccount portal or by completing Form HK1. You can claim for the current tax year or back-claim up to four years from the end of the relevant tax year. Receipts, invoices, or agency statements showing the care costs paid must be retained — Revenue can request them during a review.

If you use a registered home care agency, the agency is the employer and handles PAYE, PRSI, and USC for the carers. Your Section 467 claim is simply for the fees you paid to that agency.

If you hire an independent carer directly — without going through an agency — you become a legal employer. You must register with the Revenue Commissioners, operate the PAYE system, and deduct Income Tax, PRSI, and USC from the carer's wages. The resulting payroll and compliance burden is significant. Using a registered agency avoids these payroll obligations entirely.

Combining Section 467 With Other Supports

Section 467 relief only covers costs you actually pay. HSE Home Support hours are free and cannot be claimed. But if your parent receives 10 hours per week from the HSE and you purchase an additional 10 hours privately, the private costs are the costs to include in a Section 467 claim, subject to the qualifying test and annual cap.

This relief can be claimed alongside Carer's Allowance, Carer's Support Grant, and the local authority housing adaptation grants — they target different expenses and are not mutually exclusive. The Home Support Scheme Ireland guide includes a Cost-Sharing Worksheet and a step-by-step Section 467 filing checklist to help families calculate their combined entitlements.

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