How is rental income taxed in Ireland for 2026?

Rental income in Ireland is taxed as part of your total income at your marginal Income Tax rate (20% or 40%), plus USC (up to 8%) and PRSI (up to 4%). You can deduct allowable expenses like maintenance, insurance, management fees, and mortgage interest (restricted). Net rental profit is calculated as rental income minus allowable expenses, and this net figure is added to your other income for the year.

What expenses can I deduct as a landlord in Ireland?

Allowable expenses include: mortgage interest (limited to the net rental income), management agent fees, insurance premiums, maintenance and repairs, letting agent fees, RTB registration fees, legal and accountancy fees, mileage for property visits, and the cost of small tools and materials. Capital improvements (extensions, new kitchens) are not deductible as expenses but may be claimed as capital allowances.

How does the mortgage interest restriction work in Ireland?

Since 2017, mortgage interest relief for landlords was phased out for properties purchased before 2017. For newer properties, interest relief was also restricted. As of 2026, the general rule is that mortgage interest is deductible but limited to the level of net rental income (i.e., you cannot create or increase a rental loss through interest deductions). The specific restriction percentage varies and has been subject to annual changes.

Do I need to register as a landlord with the RTB?

Yes — all residential landlords in Ireland must register their tenancies with the Residential Tenancies Board (RTB). Registration is required annually and costs €90 per tenancy (2024 rate). Failure to register can result in penalties and affect your ability to claim certain deductions. The RTB also provides dispute resolution services for landlord-tenant issues.

How do I file tax returns as a landlord in Ireland?

If you're a PAYE employee with rental income, you file a Form 12 through myAccount. If you're self-employed or have significant rental income, you file a Form 11 through ROS (Revenue Online Service). You need to report: gross rental income, allowable expenses, net rental profit, and mortgage interest claimed. The return deadline is October 31st for paper returns or mid-November for online filings.

Landlord Tax Guide · 2026

Landlord Tax Ireland 2026: Rental Income, Allowable Expenses & Tax Relief

Being a landlord in Ireland comes with specific tax rules that every property investor needs to understand. From allowable expenses to mortgage interest restrictions, the way your rental income is taxed can significantly affect your returns. Use our Landlord Tax Calculator to estimate your tax liability.

Rental Income Tax at a Glance

The table below shows the tax impact across different rental income levels, assuming 35% expenses and 25% mortgage interest allocation:

Rental Income	Net Profit	Tax (40% band)	USC (8%)	Total Tax
€15,000	€9,750	€3,900	€780	€4,680
€25,000	€16,250	€6,500	€1,300	€7,800
€40,000	€26,000	€10,400	€2,080	€12,480
€60,000	€39,000	€15,600	€3,120	€18,720

* Assumes higher-rate taxpayer (40%). Use our Landlord Tax Calculator for your exact figures.

Allowable Expenses for Landlords

✅ Fully Deductible

•Management agent fees
•Insurance (buildings, contents, liability)
•Maintenance and repairs
•RTB registration fees
•Letting agent fees
•Accountancy and legal fees
•Mileage for property visits
•Wear and tear on furniture (€200/year cap)

⚠️ Partially Deductible

•Mortgage interest (restricted)
•Capital improvements (capital allowances only)
•Pre-letting expenses (limited)
•Cost of new appliances (capital allowance over 8 years)

Mortgage Interest Restriction

Unlike many other countries, Ireland restricts the amount of mortgage interest you can deduct. The restriction limits your interest claim to the amount of your net rental income — you cannot use mortgage interest to create or increase a rental loss.

💡 Example: Rental income €20,000, expenses €5,000, mortgage interest €8,000. Net profit before interest = €15,000. You can deduct mortgage interest up to €15,000 (not exceeding net profit). Actual interest: €8,000 → fully deductible. But if interest was €18,000, only €15,000 is deductible — creating no rental loss.

Frequently Asked Questions

Can I claim a loss on my rental property against my employment income?

No — in Ireland, rental losses can only be carried forward to offset against future rental income from the same property. They cannot be offset against employment income, self-employed income, or capital gains. This differs from some other jurisdictions where negative gearing is permitted.Calculate your landlord tax →

Do I need to charge VAT on rental income?

Residential rental income is exempt from VAT in Ireland. However, commercial property rentals may be subject to VAT at 23%. If you let both residential and commercial properties, you need to apportion your VAT registration accordingly. Most residential landlords do not need to register for VAT.Calculate your landlord tax →

How is rental income treated for USC purposes?

Rental income is included in your total income for USC calculations. Net rental profit (after allowable expenses) is added to your employment or self-employed income, and USC is applied at your marginal rate band. This means rental income can push you into a higher USC band (up to 8%).Calculate your landlord tax →

What records do I need to keep as a landlord?

You must keep records for at least 6 years, including: rent books or ledgers, bank statements showing rental income, invoices for repairs and maintenance, insurance policies, mortgage statements, RTB registration certificates, mileage logs for property visits, and letting agent statements.Calculate your landlord tax →

Can I claim pre-letting expenses before my first tenant moved in?

Pre-letting expenses (costs incurred before your first tenant moves in) are generally treated as capital expenditure rather than allowable revenue expenses. This includes costs like advertising for the first tenant, preparing the property for its first rental, and legal fees for the first lease. These may be claimable as capital allowances over time rather than immediate expenses.Calculate your landlord tax →