If you own a rental property in Ireland, the income you receive is subject to income tax, USC, and potentially PRSI. Getting your deductions right can save thousands each year. This guide covers everything from allowable expenses to filing your Form 11 return.
Rental income is added to your total income for the year and taxed at your marginal rate. For 2026, that means 20% on income within the standard rate band (EUR 44,000 for a single person) and 40% on everything above. You also pay USC and, if your non-PAYE income exceeds EUR 5,000, Class S PRSI at 4.2% (rising to 4.35% from 1 October 2026).
Under Section 97(1) of the Taxes Consolidation Act (TCA) 1997, your taxable rental profit is calculated as gross rent received minus allowable deductions. The more deductions you can legitimately claim, the lower your tax bill.
Revenue allows a wide range of deductions against rental income, provided the expenses are wholly and exclusively for the purpose of letting the property. The main deductions for 2026 are:
Under Section 284 TCA 1997, you can claim a wear and tear allowance of 12.5% per year over 8 years on the cost of furniture, fittings, and appliances you provide in the rental property. This includes items such as beds, wardrobes, cookers, washing machines, and carpets.
Keep all receipts. Revenue may ask for proof during an audit. After 8 years, the item is fully written off and no further allowance can be claimed on it.
If a property has been vacant for 12 months or more before being let, you can claim up to EUR 5,000 per property for pre-letting expenses. These are expenses you incur to make the property suitable for letting, such as repairs, cleaning, or advertising. The expense must be incurred in the 12 months before the first letting.
The Residential Premises Rental Income Relief (RPRIR) is a credit for landlords who keep their properties in the rental market. For 2026, the relief is EUR 1,000 per qualifying landlord. The property must remain available for letting for at least 4 years from the year the relief is first claimed, or the relief is clawed back.
A separate mortgage interest tax relief provides a tax credit of 20% on the increase in mortgage interest paid compared to 2022, up to a maximum credit of EUR 625 for the 2026 claim year. The mortgage balance must be between EUR 80,000 and EUR 500,000 on your principal private residence. This relief has been extended to end-2027.
If you rent out a room (or rooms) in your principal private residence, the income is exempt from income tax up to EUR 14,000 per year under Section 216A TCA 1997. If the income exceeds EUR 14,000, the entire amount becomes taxable, not just the excess. This relief applies only to your own home, not to a separate rental property.
Registration with the Residential Tenancies Board is mandatory for all private residential tenancies. Failure to register means you cannot claim mortgage interest as a deduction. The RTB registration fee is EUR 40 per tenancy, renewed annually. Check rtb.ie for current requirements.
If your non-PAYE income (including rental income) exceeds EUR 5,000, you must file a Form 11 self-assessment return. The deadline is 31 October (paper) or mid-November (ROS online filers). You must also pay preliminary tax for the current year by the same date.
Your preliminary tax can be calculated as either 100% of the prior year liability or 90% of the current year liability. If you are a PAYE worker with rental income, you can also opt to have the tax collected through your tax credits (if the amount is manageable) by contacting Revenue.
Per-property P&L, every deduction itemised, Form 11 guidance, and your exact tax liability calculated. EUR 49, delivered by email.
Get Your Report - EUR 49If you own more than one rental property, all rental income and expenses are aggregated on a single Form 11. You cannot offset a loss on one property against non-rental income, but you can carry forward the loss to offset against future rental profits. Our Property Investor Pack (EUR 99) handles multi-property calculations with a 5-year forward projection.
| Deadline | What |
|---|---|
| 31 October 2026 | Form 11 return (paper) and preliminary tax |
| Mid-November 2026 | Extended deadline for ROS online filers |
| 31 March 2026 | Local Property Tax return |
| Annually | RTB registration renewal |
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.