Landlord Tax Obligations in Ireland 2026

Rental income is fully taxable in Ireland. As a landlord, you must declare all rental income to Revenue and pay Income Tax, USC, and PRSI on your net rental profit. Failing to do so can result in interest charges, penalties, and Revenue audits. Here’s everything you need to know for the 2026 tax year.

The Basics

Rental profit = Rental income − Allowable expenses

You pay tax on the profit, not the gross income. This is why keeping accurate records of your expenses is so important.

Tax Rates (2026)

Tax	Rate
Income Tax	20% (standard rate) or 40% (higher rate)
USC	4% up to €70,044 / 8% above
PRSI	4% (or 0% if over 66 and not paying PRSI)

Total marginal rate for a landlord paying higher rate income tax:

Income Tax: 40%
USC: 8%
PRSI: 4%
Combined: 52%

This is why allowable deductions matter so much — every €1,000 in deductions saves you up to €520 in tax.

Who Must File?

You MUST file a tax return if:

Your rental income exceeds €5,000 in a year (Form 11 required, self-assessment)
You have rental income and are already self-employed
Revenue tells you to file

If rental income is under €5,000 and you’re a PAYE worker:

You can notify Revenue through MyAccount
Revenue adjusts your tax credits and collects tax through payroll
No Form 11 required

Allowable Deductions

These are the expenses you can deduct from rental income before calculating your tax bill.

✅ Deductible Expenses

Mortgage Interest

You can deduct 80% of mortgage interest (not the principal repayment)
The mortgage must be on the let property
This applies to investment properties; the rules differ for former PPR

Repairs and Maintenance

Day-to-day repairs: plumbing, painting, fixing appliances
Garden maintenance
Replacing like-for-like items (new fridge for a broken one)
Note: improvements are not deductible (adding a conservatory, attic conversion)

Insurance

Landlord building insurance
Contents insurance (for furnished properties)
Landlord liability insurance

Management Fees

Letting agent fees (typically 8–12% of annual rent)
Property management company fees

RTB Registration Fee

€90 per tenancy registration is fully deductible

Accountant Fees

If you hire an accountant to prepare your landlord tax return

Letting and Advertising Fees

Advertising costs for finding tenants
Listing fees on rental platforms

Utility Bills

If you pay any utilities that tenants are not responsible for

Legal and Professional Fees

Solicitor fees related to the tenancy (not for purchase)
RTB dispute costs

Ground Rent

If applicable on leasehold property

Rates/Service Charges

Management company fees in apartment blocks

❌ NOT Deductible

Mortgage capital repayments
Capital improvements (extensions, new kitchen fitting from scratch)
Personal expenses
Depreciation
Costs incurred before the property was first let

Wear and Tear Allowance

If you provide furniture, appliances, or equipment with the property, you can claim 12.5% wear and tear allowance per year over 8 years.

Example: Washing machine worth €600

Annual wear and tear: €600 × 12.5% = €75/year
Over 8 years: €600 total deduction

Pre-Letting Expenses

Expenses incurred in the year before first letting (e.g., painting, repairs) are deductible in the first year of letting.

How to File

PAYE Workers with Rental Income

Log into Revenue MyAccount
Go to “Manage Your Tax” → “Add Income”
Enter rental income and expenses
Revenue recalculates your tax and adjusts your credits

Self-Employed / Higher Income Landlords

File a Form 11 (self-assessment return)
Register for self-assessment if not already done
Deadline: 31 October of the following year (paper); mid-November for ROS online filers

Preliminary Tax

If your tax liability exceeds €5,000, you must pay Preliminary Tax by 31 October each year — this is an estimate of your current year’s liability, equal to at least 90% of the final bill.

Record Keeping

Keep all records for 6 years:

Rental income received (rent book, bank statements)
All expense receipts
Tenancy agreements
RTB registration confirmations
Mortgage statements showing interest charged

The €14,000 Rent-a-Room Exemption

If you rent a room in your own home (your principal private residence), the first €14,000/year is completely tax free under the Rent-a-Room Scheme. This is separate from buy-to-let income. See our Rent-a-Room Calculator →

Revenue Compliance

Revenue actively cross-checks:

RTB registration data
Property registration records (Land Registry)
Bank account transactions
Rental platform data (they have data-sharing agreements with platforms)

If you have rental income you haven’t declared, it’s far better to come forward voluntarily through Revenue’s Voluntary Disclosure programme than to be caught in an audit.

Tax Example (2026)

Scenario: Dublin landlord, PAYE job paying €60,000/year. Property rented at €1,800/month.

Item	Amount
Annual rental income	€21,600
Mortgage interest (80%)	−€8,000
Insurance	−€700
Maintenance	−€1,200
RTB fee	−€90
Accountant	−€400
Net rental profit	€11,210
Tax @ 40%	−€4,484
USC @ 8%	−€897
PRSI @ 4%	−€448
After-tax rental income	€5,381/year (€448/month)

Calculate your own tax position →

Getting Help

Revenue: revenue.ie or 01 738 3633
Chartered Accountants Ireland: Find a registered accountant at charteredaccountants.ie
Tax Institute of Ireland: taxinstitute.ie

Disclaimer: This guide provides general information only and is not tax advice. Tax law is complex and changes regularly. Always consult a qualified tax advisor for your specific situation.