Landlords
Tax on rental income in Ireland: a guide for landlords
Last updated 16 October 2026
Rent is taxed at your top rate after allowable costs. Mortgage interest, wear and tear and Rental Income Relief of up to €1,000 for 2026 bring it down.
Rent from a property in Ireland is taxed as income. You pay income tax, USC and usually PRSI on your net rental profit (the rent less the costs Revenue allows). It is added to your other income, so it is taxed at your highest rate.
What you can deduct
- repairs and upkeep, such as painting, fixing windows and replacing broken appliances like for like
- insurance, management and letting fees, service charges, and bills you pay rather than the tenant
- the Residential Tenancies Board registration fee
- interest on a loan used to buy, improve or repair the property: 100% for residential lettings, if every tenancy is registered with the Residential Tenancies Board (RTB)
- pre-letting costs on a home vacant for six months or more, up to €10,000 per property, for spending before the end of 2027
- wear and tear: 12.5% of the cost of furniture and appliances each year for eight years
What you can't
Some costs are not deductible. They include Local Property Tax, capital repayments on the mortgage and improvements such as an extension. Interest from the date you bought until the property was first let, and the value of your own time, don't count either. Improvements count instead when you sell, against Capital Gains Tax.
A worked example for 2026
An employee earning €55,000 lets an apartment for €1,800 a month. She pays €6,400 of mortgage interest, €1,200 on repairs and €2,100 on insurance, fees and the RTB, and bought €6,000 of furniture in 2023.
| Rent | €21,600.00 |
| Less repairs, interest and other costs | (€9,700.00) |
| Net rental profit | €11,900.00 |
| Less wear and tear (12.5% of €6,000) | (€750.00) |
| Taxable rental income | €11,150.00 |
| Income tax at 40% | €4,460.00 |
| Less Rental Income Relief | (€1,000.00) |
| USC | €334.50 |
| PRSI | €472.48 |
| Tax on the rent | €4,266.98 |
Her salary already uses the €44,000 standard rate band, so the rent is taxed at 40%. As a PAYE worker whose net rent is over €5,000, she pays PRSI on it too, at Revenue's 4.2375% rate for 2026 income.
Rental Income Relief
Individual landlords of residential property can claim a credit of 20% of rental profit, up to €800 for 2025 and €1,000 for 2026 and 2027. It reduces income tax only. See Rental Income Relief for the conditions.
Losses
Add up the profit or loss on each property. An overall loss carries forward against future Irish rental profit; it can't be set against your salary. Wear and tear is used before losses carried forward.
Declaring it
If your net rental income is €5,000 or less and you're a PAYE worker, declare it on Form 12 in myAccount. Above that, or with gross non-PAYE income (before costs) over €30,000, register for self-assessment. Then file Form 11 (Panel C) by 31 October of the next year. In 2027 the rent tax credit, bands and credits change under Budget 2027, once Finance (No. 2) Bill 2026 is enacted.
Work it out
Sources
- Revenue: Irish rental income: what expenses are allowed? (checked 25/10/2026)
- Revenue: Irish rental income: what expenses are not allowed? (LPT, pre-letting, own labour) (checked 16/10/2026)
- Revenue: Rental profit and losses (worked example, capital allowances before losses) (checked 16/10/2026)
- Revenue: How do you declare your rental income? (€5,000 myAccount limit) (checked 16/10/2026)
- Revenue: Residential Premises Rental Income Relief: €800 (2025), €1,000 (2026 and 2027) (checked 25/10/2026)
- Citizens Information: Social insurance classes (PAYE workers with unearned income over €5,000 pay PRSI) (checked 16/10/2026)
- Revenue: Form 11 2025: Tax Return and Self-Assessment (checked 24/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.