Property CGT in Ireland: The 2026 Guide
Capital Gains Tax (CGT) is a tax on the profit you make when you sell a property. This guide explains how CGT works for property sales in Ireland and how you can legally reduce your tax bill by claiming allowable deductions, including improvement expenses.
1. How CGT is Calculated
CGT is calculated based on the difference between the sale price and the total allowable costs of the property.
CGT Calculation Formula:
CGT = (Sale Price - Purchase Price - Improvement Expenses - Acquisition Costs - Disposal Costs - Annual Exemption) × CGT Rate
2. Allowable Deductions for CGT
When calculating your CGT liability, you can deduct several types of costs from your property sale profit:
Improvement Expenses
Costs of improvements that enhance the value of the property, such as extensions, renovations, or major upgrades. Regular maintenance and repairs are not deductible.
Acquisition & Disposal Costs
Legal fees, stamp duty, and estate agent fees incurred when buying and selling the property can be deducted from your CGT liability.
3. Principal Private Residence Exemption
Your main home (Principal Private Residence) is generally exempt from CGT. However, if you used part of your home for business purposes or rented it out, you may have to pay CGT on that portion.
4. CGT Rates and Exemptions
For the 2026 tax year:
- Standard CGT Rate: 33% for property sales
- Annual Exemption: €1,270 per person
- PPR Exemption: No CGT on your main home
Verified for 2026 Revenue Rules
All calculations and deduction rules are updated based on the latest Finance Act. For official guidance, visit Revenue.ie.