In short
If you pay for an approved income protection policy, which pays you an income if illness stops you working, you may get tax relief at your highest rate, 20% or 40%, on the premiums. The relief is limited to 10% of your total income. If you pay through your employer's group scheme, payroll often gives the relief already.
Who may qualify
- You pay premiums on a Revenue-approved permanent health benefit (income protection) policy
- You pay them yourself, not your employer
How to claim
- Through your employer's scheme: check your payslip. If the premium is taken from gross pay before tax, you already get the relief.
- Your own policy: claim it in myAccount for the current year, or in the income tax return for earlier years. Your insurer can give you a statement of premiums paid.
Get your tax back for missed years
Missed the income protection relief? You can still get the tax back as a tax refund for every year since 2022.
For the current year, add the credit in myAccount and it comes through your pay. For earlier years, it's claimed in the income tax return for each year.
Common questions
Is mortgage protection or life cover the same thing?
No. Mortgage protection and ordinary life assurance don't get this relief.
If the policy pays out, is it taxed?
Yes. Benefits paid under these policies are taxable income, usually through payroll.
Sources
Revenue: Permanent health benefit schemes (income protection), on revenue.ie. Confirm the 10% income limit and current approval rules before publishing ◆.
Questions for Revenue directly? Call the PAYE helpline on 01 738 3636 (Monday to Friday, 9.30am to 1.30pm), or see all Revenue contact numbers.
General information, not advice on your own situation. TaxMind checks your record before filing anything.
