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Rental income tax for Irish landlords

Rental income tax for Irish landlords

Irish rental profit is added to your other income and taxed at your marginal rate. Getting your expenses and reliefs right makes a big difference to what you keep.

Check official sources. Figures below were checked against the official pages listed at the bottom on 14 October 2026. Budget and Finance Act changes can alter them, so confirm before relying on them.

Which return do you file?

PAYE employee with net rental income under €5,000: declare it on a Form 12 (myAccount).
Net rental income over €5,000, or you're already self-assessed: file a Form 11 on ROS.

Expenses you can deduct

Local authority rates and ground rent
Fire and public liability insurance, and certain mortgage protection premiums
Maintenance and repairs (cleaning, painting, fixing windows or doors)
Management, advertising, legal and accountancy fees
Services you pay for that the tenant doesn't repay (for example refuse, heating or service charges)
RTB registration fees
Capital allowances on furniture and fittings
Certain pre-letting and retrofitting costs

Mortgage interest

Interest on a loan used to buy, improve or repair the rental property can be deducted, but only if the tenancy is registered with the RTB. Capital repayments are not deductible.

Residential Premises Rental Income Relief (RPRIR)

Individual landlords can reduce income tax by up to €1,000 in 2026 and 2027 (€800 in 2025, €600 in 2024). It's the lowest of the cap and 20% of qualifying rental profit (after capital allowances and losses). It reduces income tax only, not USC or PRSI, and can't create a refund. To qualify on 31 December you need tax clearance, to be LPT compliant, and an RTB-registered tenancy (or the property actively marketed for rent). It doesn't apply if you rent to a family member or other connected person.

Short-term lets are different

Income from occasional guests (for example through a booking site) is not treated as rental income. It's taxed as other income or as trading income.

Set aside as you go

Rental profit at the higher rate can cost roughly half in income tax, USC and PRSI. Move a percentage of each month's net rent into a tax account and track expenses with receipts.

Sources

Figures checked 12–13 October 2026. Rules change, so always confirm with the official source.

Frequently asked questions

Is rental income taxed at 40% in Ireland?

It's added to your other income and taxed at your marginal rate. If your salary already uses the 20% band, rental profit is taxed at 40%, plus USC and PRSI where they apply.

Can I claim mortgage interest on a rental property?

Yes, interest on a loan used to buy, improve or repair the property, but only if the tenancy is registered with the RTB.

What is the €1,000 landlord relief?

Residential Premises Rental Income Relief reduces income tax by the lowest of €1,000 (2026 and 2027) and 20% of qualifying rental profit. It doesn't reduce USC or PRSI.

Not financial advice. These guides are general information for budgeting and planning, not financial, tax, legal or mortgage advice. Rules change and your situation is unique. Check official sources or a qualified adviser before you act.