Budget 2026: Elderly in care homes to pay less from their pension
Tax deductions for people supporting elderly in care increases to €4,500
Elderly people living in nursing homes will now have less deducted from their pension for the care they receive.
Currently, the elderly in care homes pay a portion of their pension based on their level of care. This varies from 60% to 80% of their pension and 60% of additional income.
When one member of a couple enters such a home, including St Vincent de Paul, the spouse not receiving care keeps 70% of their pension and half of the bonuses of the spouse who is in care.
When both members of a couple are in care, instead of the current deduction of 60% or 80% from their total income, the deduction will be reduced to 50% where a 60% deduction currently applies, and to 70% where 80% currently applies.
"This is to ensure that these couples are left with more money in their pockets for other personal needs they may have," Caruana said.
Tax deductions for people supporting elderly family in care homes will increase to €4,500, up from the current €2,500.
These tax deductions apply to fees paid for nursing homes, fees paid for persons with disabilities, and fees for respite centres.