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Rental Income Tax Calculator for Ireland

Calculate the Irish income tax, USC, and PRSI attributable to your rental income for 2026. Estimates the tax impact of rental profit after allowable deductions.

Your details

Total rent received in the year, before any expenses.

Interest paid on a loan used to purchase, improve, or repair the rental property. Principal repayments are not deductible.

Cost of repairs that maintain the property's existing condition (e.g., fixing a leak). Improvements are not deductible.

Fees paid to the Residential Tenancies Board for registering the tenancy.

Other deductible costs (e.g., property management fees, landlord insurance, service charges).

Your total income from other sources (e.g., employment, self-employment) for the tax year. This is needed to calculate your overall tax rate and USC bands.

The standard tax credit for a single individual. For 2026, this is €1,850. If you are married/civil partnered or have other credits (e.g., PAYE, Home Carer), you must add them in the 'Other Tax Credits' field.

Any additional personal tax credits you are entitled to, such as the PAYE Tax Credit (€1,850), Home Carer Tax Credit, etc. Sum all applicable credits.

Select your PRSI contribution class. Most employees are Class A. Self-employed are Class S.

Result

Total Tax & PRSI Due to Rental Income €4,951.85

Estimated total additional tax liability caused by your rental income for the year.

How it is calculated

Total Allowable Expenses Sum of all deductible expenses related to the rental property.
€4,790.00
Net Rental Income (Taxable) Rental profit subject to tax.
€10,210.00
Total Taxable Income Your combined income from all sources.
€55,210.00
Total Personal Tax Credits Sum of all your personal tax credits.
€1,850.00
Income Tax (Before Credits) Income tax calculated using progressive bands on total income.
€13,684.00
Income Tax Payable Income tax after applying your personal tax credits.
€11,834.00
Income Tax Due to Rental Income The additional income tax caused by adding your net rental income.
€4,084.00
USC Payable on Total Income Universal Social Charge calculated on total income.
€1,660.27
USC Due to Rental Income The additional USC caused by adding your net rental income.
€459.45
PRSI Payable on Rental Income PRSI contribution due on the net rental profit. For Class S, 4% on income over €5,000, with a €500 minimum.
€408.40
Effective Tax Rate on Rental Profit The additional tax caused by rental income, as a percentage of your net rental profit.
48.5 %
Keep in mind
  • This calculator provides an estimate for the 2026 tax year based on current tax legislation. Actual liability may vary based on individual circumstances, reliefs, or additional charges.
  • The 'Income Tax' calculation uses a simplified two-band model for a single person. Tax bands vary by personal status (single, married, etc.).
  • For self-employed (Class S) PRSI: The calculation applies 4% to net rental income over €5,000, with a minimum annual contribution of €500. This is reflected in the calculator.
  • Capital expenditures (improvements) and mortgage principal repayments are not deductible expenses.
  • The 'Total Tax & PRSI Due to Rental Income' isolates the tax impact of your rental profit by calculating the difference in your tax bill with and without the rental income.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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Residential Lease Agreement

Irish Rental Income Tax Explained

If you rent out a property in Ireland, the profit you make is subject to income tax, the Universal Social Charge (USC), and Pay Related Social Insurance (PRSI). Understanding how this tax is calculated, and specifically how much of your total tax bill is due to rental income, is crucial for landlords to budget accurately and meet their Revenue obligations.

What is Taxable?

You are taxed on your net rental income. This is your total annual rent received, minus any allowable expenses incurred in earning that rent. You must declare this income on your annual tax return (Form 11 or 12).

Allowable Deductions

You can deduct the following costs from your gross rent to arrive at your taxable profit:

  • Mortgage Interest: Interest paid on a loan used to buy, improve, or repair the rental property. Note: the capital portion of your mortgage repayment is not deductible.
  • Repairs & Maintenance: Costs to maintain the property in its existing condition (e.g., fixing a broken window, repainting). Improvements that enhance the property's value (e.g., adding an extension) are not deductible.
  • RTB Fees: Fees paid to the Residential Tenancies Board for registering the tenancy.
  • Other Expenses: Property management fees, landlord insurance, service charges, accounting fees for rental accounts, and certain local authority charges.

How the Tax Impact is Calculated

Your net rental income is added to any other income you have (e.g., from employment). To find the tax caused by your rental income, we calculate your total tax bill and then subtract the tax you would have paid without the rental income. This is done in three parts:

  1. Income Tax Impact: Income tax is applied at 20% on income up to €42,000 and 40% on the balance (for a single person in 2026). Your personal tax credits are deducted. The additional income tax due to rental income is the difference between your final bill and the tax you would pay on your other income alone.
  2. USC Impact: USC is a progressive charge. Rates for 2026 are 0.5% up to €12,012, 2% up to €25,760, 4.5% up to €70,044, and 8% on any balance. The additional USC due to rental income is found by comparing the USC on your total income versus the USC on your other income alone.
  3. PRSI on Rental Income: This is calculated directly on the net rental profit. Employees (Class A) pay 4% on the full amount. Self-employed individuals (Class S) pay 4% on rental income over €5,000, with a minimum annual contribution of €500.

Example Calculation

Sarah is a single employee (Class A PRSI) earning €45,000 from her job. She rents out an apartment for €1,250 per month (€15,000 annually). Her deductible expenses total €4,790.

  • Net Rental Income: €15,000 - €4,790 = €10,210
  • Total Income: €45,000 + €10,210 = €55,210
  • Income Tax Without Rental: Tax on €45,000 = (€42,000 @ 20%) + (€3,000 @ 40%) = €8,400 + €1,200 = €9,600. Minus €1,850 credit = €7,750.
  • Income Tax With Rental: Tax on €55,210 = (€42,000 @ 20%) + (€13,210 @ 40%) = €8,400 + €5,284 = €13,684. Minus €1,850 credit = €11,834.
  • Income Tax Due to Rental: €11,834 - €7,750 = €4,084.
  • USC Due to Rental: Calculated similarly as the difference between USC on €55,210 and USC on €45,000.
  • PRSI on Rental: €10,210 @ 4% = €408.40.
  • Total Tax Due to Rental Income: Sum of the three amounts above.

Next Steps & Important Documents

After estimating your tax liability, ensure you keep detailed records of all rent received and expenses paid. The cornerstone of a compliant tenancy is a clear Residential Lease Agreement. This document outlines the rights and responsibilities of both landlord and tenant, including the rent amount, which is a key figure for your tax calculations.

Frequently asked questions

What expenses can I NOT deduct from my rental income?

You cannot deduct capital improvements (like a new kitchen or extension), the principal portion of your mortgage repayment, personal expenses, or costs for periods when the property was vacant (unless actively advertised).

Do I pay tax on rental income if I make a loss?

If your allowable expenses exceed your rental income, you have a rental loss. This loss can be carried forward to offset future rental profits. You generally do not pay income tax, USC, or PRSI on a loss, and the calculator will show zero tax attributable.

How does the Rent-a-Room Relief scheme affect this?

Rent-a-Room Relief is separate. If you rent out a room in your own principal private residence, you may earn up to €14,000 per year tax-free. This calculator is for full property rentals and does not apply Rent-a-Room Relief.

I'm a non-resident landlord. Is the tax different?

Yes. Tenants or agents of non-resident landlords must generally deduct income tax at 20% from rent payments and pay it to Revenue. You must then file an Irish tax return. This calculator is designed for resident landlords.

Why calculate the tax 'due to rental income' instead of the total bill?

Calculating the additional tax caused by your rental income gives you a true picture of its profitability. Your total tax bill includes tax on your employment or other income; isolating the rental portion shows the actual tax cost of being a landlord.

What if I have multiple rental properties?

You should combine the income and expenses from all your Irish rental properties. Enter the total gross rental income and total allowable expenses from all properties into the calculator.

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