If a family member is moving into long-term nursing home care, the Nursing Homes Support Scheme — usually just called Fair Deal — is the main way the cost is covered. The HSE pays most of the bill and you contribute a fixed share, calculated from your income and the value of your assets. This guide walks through exactly how that calculation works in 2026, what the 3-year cap means in practice, and what Fair Deal does and doesn't cover.

The one-line version

You contribute 80% of your income and 7.5% of the value of your assets (after a disregard) every year towards the cost of care. The HSE pays the rest, up to the price it has agreed with your nursing home.

Who can apply

To qualify you need to be ordinarily resident in Ireland and to actually need long-term nursing home care — confirmed by a Care Needs Assessment carried out by the HSE. Fair Deal is not available for short-term stays such as respite, convalescence, or day care.

How your contribution is calculated

There are two pieces: income and assets. The rates are lower if you're part of a couple because Fair Deal halves the combined figures.

Income

  • Single applicant: 80% of assessable income.
  • Couple: 40% of assessable income (calculated on half of the combined income).

"Assessable income" means pensions, rental income, investment income and similar — after income tax, PRSI, USC, and certain allowable deductions (for example, health insurance premiums and maintenance payments).

Assets

  • Single applicant: 7.5% per year of the value of cash assets and non-cash assets (land, property, shares).
  • Couple: 3.75% per year (calculated on half of the combined assets).

The first €36,000 of assets (€72,000 for a couple) is disregarded — so if the total assets are under that, nothing is added to your weekly contribution from the asset side.

The 3-year cap on your home

This is the rule that protects most families from losing the principal private residence.

The 7.5% asset contribution applies to all of your non-cash assets for the first three years. After that, your principal private residence is no longer counted — the remaining years in care do not add to the contribution from your home.

In practice, that caps the contribution drawn from your home's value at 22.5% (7.5% × 3 years). A €300,000 home therefore contributes no more than €67,500 in total over the entire stay.

This cap applies to the home only — cash, other property, and investments continue to be assessed every year.

The farm or business extension

A similar 3-year cap is available for a family farm or family business if the applicant (or their partner) worked it substantially for at least three of the five years before applying. The rules are strict, so get professional advice before relying on this.

What the HSE pays — your home's Section 40 price

For approved private and voluntary homes, the National Treatment Purchase Fund (NTPF) negotiates a weekly price with every home. This is known as the "Section 40" price. It's the maximum the HSE will pay for a resident's care at that home.

If your contribution plus the HSE's contribution covers the Section 40 price, that's what you pay — nothing more. You do not top up if the home's own "full private" rate is higher; the Section 40 price is the binding figure.

2026 Section 40 rates for private homes range from around €1,200 to €1,450 per week depending on the home and region. Public nursing homes are priced separately and are typically higher.

A worked example

Take a single applicant with a €20,000 annual pension, €10,000 savings, and a €300,000 home — moving into a home with a Section 40 rate of €1,400/week.

  • Income contribution: 80% of €20,000 = €16,000/year = ~€307/week
  • Assets in excess of €36,000: €10,000 cash + €300,000 home − €36,000 disregard = €274,000
  • Asset contribution (years 1–3): 7.5% of €274,000 = €20,550/year = ~€395/week
  • Total contribution: ~€702/week
  • HSE pays: €1,400 − €702 = €698/week

From year 4 onwards the home drops out of the assessment. If only the €10,000 cash remained as an assessable asset (and €36k disregard fully absorbs it), the asset portion falls to zero. The contribution becomes the income-only figure of ~€307/week.

The Nursing Home Loan (Ancillary State Support)

If your contribution draws on the value of your home, you don't have to sell it to pay. You can apply for an optional nursing home loan — the HSE pays your asset contribution, and the debt is collected from your estate (typically when the home is eventually sold). Interest is charged annually, linked to the Consumer Price Index.

The loan is voluntary and is applied for as part of the same Fair Deal application.

What Fair Deal does not cover

  • Respite, convalescent and day care (short-term stays)
  • Therapies such as physiotherapy that aren't part of the home's standard service
  • Extra "hotel" charges the home may levy (social programmes, hairdressing, newspaper delivery etc.)
  • Home care or home support services — see our separate guide on HSE Home Support

What to do next

Sources: HSE — About the Fair Deal scheme, Citizens Information — Fair Deal scheme, Revenue — Fair Deal loan. This guide is general information, not financial or legal advice.