Can I deduct my mortgage repayments?

Only the interest, and only on a loan used to buy, improve or repair the let property. For homes you let, all the interest is allowed if the tenancy is registered with the Residential Tenancies Board (RTB). Repaying the loan itself is never allowed.

Is Local Property Tax deductible?

No. Local Property Tax (LPT) can't be taken off rent. But being up to date with it is a condition of Rental Income Relief.

What is Rental Income Relief?

A tax credit for people who let homes. It's 20% of your rental profit after allowances and losses, up to €800 (2025) or €1,000 (2026 and 2027). It cuts income tax only, not USC or PRSI.

Do I pay PRSI on rent?

If you're self-employed or have no job, rent counts as Class S income: 4.125% for 2025 and 4.2375% for 2026, at least €650 once income reaches €5,000. A PAYE worker pays PRSI on rent only when other income after expenses is over €5,000.

Property

Landlord tax on rental income

Work out the tax on your rent, property by property, with every figure placed on its Form 11 line.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Can I deduct my mortgage repayments?: Only the interest, and only on a loan used to buy, improve or repair the let property. For homes you let, all the interest is allowed if the tenancy is registered with the Residential Tenancies Board (RTB). Repaying the loan itself is never allowed.
Is Local Property Tax deductible?: No. Local Property Tax (LPT) can't be taken off rent. But being up to date with it is a condition of Rental Income Relief.
What is Rental Income Relief?: A tax credit for people who let homes. It's 20% of your rental profit after allowances and losses, up to €800 (2025) or €1,000 (2026 and 2027). It cuts income tax only, not USC or PRSI.
Do I pay PRSI on rent?: If you're self-employed or have no job, rent counts as Class S income: 4.125% for 2025 and 4.2375% for 2026, at least €650 once income reaches €5,000. A PAYE worker pays PRSI on rent only when other income after expenses is over €5,000.

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