rental income tax calculator ireland

How this rental income tax calculator for Ireland works

If you earn rental income in Ireland, the key question is simple: how much of that rental profit will go to tax? This page gives you a practical way to estimate the three main charges landlords usually face: Income Tax, PRSI, and USC.

The calculator starts with your annual gross rent, then subtracts your deductible costs to estimate taxable rental profit. It then applies your selected marginal Income Tax rate, PRSI rate, and an incremental USC estimate based on your other taxable income.

What counts as rental income in Ireland?

Rental income generally includes rent received from tenants for houses, apartments, rooms (outside specific exemption schemes), and other lettings. For tax purposes, you typically work from gross rents received minus allowable expenses.

Typical allowable expenses (subject to Revenue rules)

• Mortgage interest (where conditions are met)
• Insurance premiums for the rental property
• Repairs and maintenance (not capital improvements)
• Property management and letting-agent fees
• Accountancy fees related to rental accounts
• RTB registration costs and certain other property running costs

Costs that are often misunderstood

Not every payment connected with a property is deductible in full in the year paid. Capital improvements and some one-off structural works may be treated differently from ordinary repairs. That distinction can materially change your taxable profit.

Income Tax, PRSI, and USC on Irish rental profits

1) Income Tax

Rental profits are generally taxed at your marginal rate (commonly 20% or 40%). Many landlords already in the higher bracket will see rental profit taxed at 40%.

2) PRSI

PRSI can apply to unearned income (including rental income) depending on your personal status and exemptions. A 4% setting is common for planning estimates, but not universal.

3) USC

USC is banded and depends on your total income profile. Because USC is progressive, this calculator estimates the additional USC triggered by rental income by comparing USC with and without rental profit included.

Worked example

Suppose you collect €24,000 annual rent, with €3,000 allowable expenses, €6,000 mortgage interest, and €1,000 capital allowances. Taxable rental profit would be roughly:

€24,000 - €3,000 - €6,000 - €1,000 = €14,000

If your marginal Income Tax rate is 40%, PRSI is 4%, and USC applies, your total annual tax on that rental profit can be substantial. This is why proactive planning and clean records matter so much for landlords in Ireland.

How to improve rental tax efficiency legally

• Keep detailed records of all allowable expenses year-round.
• Separate repair costs from capital improvements clearly.
• Track mortgage interest statements accurately.
• Use carried-forward rental losses where available.
• Review ownership structure with professional advice (especially for multi-property portfolios).
• File on time to avoid penalties and interest.

Common landlord mistakes

• Forgetting smaller deductible costs and overpaying tax.
• Claiming non-deductible personal costs by mistake.
• Ignoring USC/PRSI and budgeting only for Income Tax.
• Leaving tax planning until the return deadline.

FAQ: rental income tax in Ireland

Is this calculator an official Revenue calculator?

No. It is an independent estimate tool designed for budgeting and scenario planning.

Can I use monthly rent instead of annual rent?

Yes, but convert to annual first (monthly rent × 12) for the most accurate output.

Does this calculator handle every Irish tax relief?

No. It covers core rental tax mechanics and common settings. Your final position may differ due to credits, exemptions, relief caps, and personal circumstances.

Should I still talk to an accountant?

For final filings and strategic tax planning, yes. A qualified Irish tax professional can apply current Revenue guidance to your specific facts.