Landlord tax calculator: tax on rental income

How it is worked out

• Profit: rent less allowable expenses: mortgage interest (if the tenancy is RTB-registered), insurance, repairs, management fees, the RTB fee, and 12.5% of the cost of furniture and appliances a year. Losses from earlier years come off next.
• Income tax: the profit sits on top of your salary, so it is taxed at your marginal rate, usually 40% if you earn over the standard rate band. The landlord relief (RPRIR) then takes up to €1,000 off, or 20% of the profit if that is less.
• USC: at your top USC rate, usually 3% or 8%, plus 3% on any non-PAYE income above €100,000.
• PRSI: 4.24% of the whole profit in 2026 (the rate rises on 1 October each year) if you are an employee under 66 and the profit is over €5,000.
• Declaring it: with net rental income under €5,000, an employee declares it in the Income Tax Return in myAccount. Over €5,000, you register for self-assessment and file a Form 11 through ROS (Revenue).

Frequently asked questions

How is rental income taxed in Ireland?
Your rental profit (rent less allowable expenses) is added to your other income and taxed at your marginal rate: 20% or 40% income tax, plus USC, plus PRSI if you are an employee under 66 with more than €5,000 of rental profit. A higher-rate taxpayer typically pays about 52% on each extra euro of profit.

Can I deduct mortgage interest?
Yes, all of the interest on a loan used to buy, improve or repair the property, but only while the tenancy is registered with the Residential Tenancies Board (RTB). Capital repayments are not deductible.

What is the landlord tax relief (RPRIR)?
Residential Premises Rental Income Relief is a tax credit of up to €1,000 a year in 2026 and 2027 (€800 in 2025), capped at 20% of your rental profit after capital allowances and losses. You need RTB-registered tenancies and must still own the property on 31 December. Revenue claws it back if you sell or give away the property within 4 years of the first year you claim, stop letting it (and stop marketing it for rent), change its use, or let it to a connected person.

Is it 8% or 11% USC on rental income?
Rental profit pays USC at the normal rates (up to 8%). The 3% surcharge applies only to non-PAYE income above €100,000 a year, so 11% is only on the part of your rental profit above that.

Do I pay PRSI on rental income?
If you are an employee under 66 and your rental profit is more than €5,000, you pay PRSI on all of it (4.2% until 30 September 2026, 4.35% from 1 October 2026). At €5,000 or less, or from 66, there is none.

What about furniture and appliances?
Wear and tear allowance: 12.5% of the cost of furniture, fittings and white goods each year for 8 years.

Related

• Budget 2027 take-home pay calculator · Rent tax credit (for tenants)
• Capital gains tax calculator: when you sell the property. Inheritance and gift tax: when you pass it on.
• Where should my money go?: property against deposits, ETFs and pensions after tax.