Rent-a-Room Relief

What conditions must be met?

For you to qualify for Rent-a-Room Relief the following conditions must be met:

  • the gross income from the rent must be below the exemption limit
  • there must be a minimum continuous-letting period (with exceptions)
  • the room must be in a ’qualifying residence’.

Exclusions

You cannot claim the relief against income received for the use of the room or rooms from:

  • your child or civil partner
  • an employer
  • short-term guests (including those who book accommodation through online booking sites).

Note

The relief can apply to lettings used as residential accommodation for students in an academic year or term.

Exemption limit

There is an annual exemption limit for Rent-a-Room Relief. This limit applies to the gross amount of income received for the room or rooms in your home.

Annual exemption limit for Rent-a-Room Relief
YearIncome amount exempt

2015

€12,000

2016

€12,000

2017

€14,000

2018

€14,000

2019

€14,000

The gross income is the total income before you deduct expenses. 

Expenses include the maintenance of the room let and capital allowances due on fixtures and fittings.

If your gross rental income does not exceed the exemption limit, you do not pay:

If the gross rental income does exceed the exemption limit, the total amount of income is taxed.

Minimum continuous letting period

From 1 January 2019, the relief does not apply to income arising from letting periods which do not exceed 28 consecutive days.

Exceptions

Relief will apply to shorter term residential accommodation which is not leisure or business , for example:

  • lettings for respite care for incapacitated individuals
  • accommodation for full or part time students, including language students,
  • four-day-a-week ‘digs’.

Next: What type of residence qualifies?