Landlord Tax in Ireland: The 2026 Guide
Being a landlord in Ireland involves more than just collecting rent. It comes with significant tax responsibilities and opportunities. This guide explains how rental income is taxed and, more importantly, how you can legally reduce your tax bill by claiming all allowable expenses.
1. How Rental Income is Taxed
Rental income is treated as "Case V" income by Revenue. It is added to your other income (such as your PAYE salary) and taxed at your marginal rate.
Tax Rates Breakdown:
- Income Tax: 20% (Standard Rate) or 40% (Higher Rate), depending on your total income.
- USC: Universal Social Charge applies to rental income (rates vary from 0.5% to 8%).
- PRSI: Class S PRSI at 4% usually applies.
2. Top 10 Tax Deductible Expenses
You pay tax on your profit, not your total rent. Profit = Gross Rent - Allowable Expenses. Here are the key deductions:
Mortgage Interest
You can claim 100% of the interest on your buy-to-let mortgage. You must be registered with the RTB to claim this. Capital repayments are NOT deductible.
Capital Allowances
Furniture and white goods (sofas, washing machines) are written off at 12.5% per year over 8 years. You cannot deduct the full cost in Year 1.
Repairs
Fixing a broken window or boiler is deductible. Improving the property (e.g., building an extension) is NOT a rental expense; it's a capital cost.
RTB Fees
The annual registration fee you pay to the Residential Tenancies Board is fully tax-deductible.
3. Pre-Letting Expenses
Generally, expenses incurred before a property is first let are not deductible. However, a specific relief allows you to claim up to €10,000 in pre-letting expenses if the property was vacant for at least 6 months before letting.
4. Filing Dates
For the 2026 tax year (Jan 1 - Dec 31), you must file your tax return and pay any tax due by:
- October 31st 2027: Paper filing deadline.
- Mid-November 2027: ROS (Revenue Online Service) extended deadline.
Verified for 2026 Revenue Rules
All calculations and expense rules are updated based on the latest Finance Act. For official guidance, visit Revenue.ie.