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Irish rental income

  1. Overview
  2. What expenses are allowed?
  3. What expenses are not allowed?
  4. How do you calculate your taxable income?
  5. Rental profit and losses
  6. Tax incentive schemes for rental income
  7. Premiums on leases
  8. How do you declare your rental income?

How do you calculate your taxable income?

The rate of tax you will pay on your Irish rental income will depend on your:

You can find further details in the Calculating your Income Tax section.

Your net rental income is your gross rental income less your allowable deductions or expenses. This determines if you have a profit or a loss.

Once you have determined what your net rental income is, you need to then determine what rate of tax you must pay on your total income. You must allow for any tax you have already had deducted through other sources such as PAYE.

  • Example 1

    Denise rents a property in Ireland to a tenant for €1,300 per calendar month.

    Denise's rental income and allowable expenses
     ValuesAmounts
    Gross rental income   €15,600
    Insurance €850  
    Maintenance (painting and decorating) €950  
    Registration fee (Residential Tenancies Board) €90  
    Allowable mortgage interest (€2,100 @ 100%)  
    Repairs €1,800  
    Total allowable expenses   €5,790
    Net rental profit   €9,810

    Denise is single and had no other source of income in the year ended 31 December 2023.

    In 2023, the standard rate of tax for a single person was €40,000. As Denise's total taxable income for 2023 was €9,810, her rental income will be taxed at the standard rate of tax of 20%.

    Deirdre's tax and credits
      Amounts
    Net taxable rental income €9,810
    Tax due on net rental profits at standard rate of tax €1,962
    Less personal credit €1,775
    Total tax due €187

     

  • Example 2

    Caroline rents a property to a tenant for €850 per month. The gross rental income for the year ended December 2024 is €10,200.

    Caroline's rental income and allowable expenses
      ValuesAmounts
    Gross rental income   €10,200
    Insurance €960  
    Capital allowances €81 (€650 @ 12.5%)  
    Registration fee (Residential Tenancies Board) €90  
    Allowable mortgage interest €600 (€600 @ 100%)  
    Repairs €420  
    Total allowable expenses   € 2,151
    Net rental profit   €8,049

    Caroline is married and also had PAYE income amounting to €38,200 in the year ended 31 December 2024. Caroline is jointly assessed with her spouse Laura, who has no additional income.

    In 2024, the standard rate of tax for a married person was €51,000. As Caroline’s total income for 2024 is €46,249, their total income of €46,249 is taxable at 20%.

    Caroline's tax and credits
      ValuesAmounts
    PAYE income €38,200  
    Total taxable rental income €8,049  
    Total taxable income   €46,249
    Income taxed @ 20% €46,249 €9,249.80  
    Gross tax   €9,249.80
    Less married person credit €3,750  
    Less Employee Credit €1,875  
    Total tax credits   €5,625
    Total tax due   €3,624.80

    To work out how much tax Caroline owes on just their rental income, they will have to deduct the tax due on their PAYE income and tax credits from the total tax due.

    Calculate tax due on just rental income
      Values Amounts
    Tax on PAYE income (€38,200 x 20%) €7,640  
    Less tax credits €5,625  
    Tax due on PAYE income   €2,015
    Tax payable on Rental Income
    (total tax due €3,624.80 - €2,015)    		   €1,609.80

     

Next: Rental profit and losses

Published: 14 February 2025 Print this page

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