Gifts and inheritances
Inheritance tax in Ireland: how Capital Acquisitions Tax works
Last updated 16 October 2026
Inheritance tax is 33% of what you inherit above your group threshold: €420,000 from a parent from 7 October 2026. Earlier gifts count.
Inheritance tax in Ireland is part of Capital Acquisitions Tax (CAT). The person who inherits pays it, not the estate. It is 33% of the value you inherit above a tax-free threshold that depends on your relationship to the person who died.
The thresholds
| Group | Who | To 6 Oct 2026 | From 7 Oct 2026 |
|---|---|---|---|
| A | Children (and parents inheriting outright from a child) | €400,000 | €420,000 |
| B | Brothers, sisters, nieces, nephews, grandparents, grandchildren | €40,000 | €44,000 |
| C | Everyone else | €20,000 | €22,000 |
The date of the inheritance, usually the date of death, decides which thresholds apply. The Budget 2027 increases take effect in law when Finance (No. 2) Bill 2026 is enacted. Nothing is due on a gift or inheritance from a spouse or civil partner.
Earlier gifts and inheritances count
The threshold is a lifetime amount for each group. Everything you've received in the same group since 5 December 1991 is added together, and only what's left of the threshold is available. That's called aggregation.
An example
A daughter inherits her mother's house, worth €520,000, in November 2026. €12,000 of funeral costs and debts come from her share. Earlier gifts from her mother had a taxable value of €30,000 after the small gift exemption.
| Value of the inheritance | €520,000.00 |
| Less debts and costs | (€12,000.00) |
| Taxable value | €508,000.00 |
| Group A threshold | €420,000.00 |
| Less earlier benefits in Group A | (€30,000.00) |
| Threshold left | €390,000.00 |
| Taxable excess | €118,000.00 |
| Inheritance tax at 33% | €38,940.00 |
Reliefs and exemptions
- an inherited home you lived in for three years before, with no other home: see the dwelling house exemption
- Agricultural Relief and Business Relief cut the taxable value of qualifying farms and businesses by 90%, with conditions
- a niece or nephew who worked in the business for five years can use the Group A threshold for business assets
Paying and filing
You must file a Form IT38 return once your benefits in a group pass 80% of the threshold, even if no tax is due. Tax and return are due by 31 October. That is 31 October of the same year if the valuation date is from January to August. For September to December, it is 31 October of the next year. In the example the valuation date is 15 March 2027, so she pays and files by 31 October 2027.
Work it out
Sources
- Revenue: CAT group thresholds (€420,000 / €44,000 / €22,000 from 7 October 2026) (checked 25/10/2026)
- Revenue: CAT rates (33% from 6 December 2012) (checked 25/10/2026)
- Revenue: CAT aggregation rules (prior benefits since 5 December 1991) (checked 25/10/2026)
- Revenue: Historical CAT groups, group thresholds and rates (who is in Group A, B and C) (checked 16/10/2026)
- Revenue: How and when do you pay and file CAT? (31 October by valuation date) (checked 25/10/2026)
- Revenue: IT38 filing obligations (80% of the group threshold) (checked 25/10/2026)
- Revenue: CAT exemption for a dwelling house (checked 16/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.