1. What is Rental Income Tax in Ireland?

Rental income tax in Ireland is calculated on the profit from renting out property after deducting allowable expenses. The tax consists of income tax (at 20% and 40% rates), PRSI (4%), and USC (variable rates).

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

• Tax Rate — 20% up to standard rate cut-off point (€36,800 for single individuals), 40% on balance
• PRSI — 4% of taxable income
• USC — Variable rates from 0.5% to 8% depending on income level

3. Allowable Expenses

Common allowable expenses include: Mortgage interest (restricted), property tax, insurance, repairs/maintenance, management fees, and certain service charges. Capital expenses and personal use portions are not deductible.

4. Using the Calculator

Instructions: Enter your gross rental income, all allowable expenses, and your standard rate cut-off point (default is €36,800 for single individuals). The calculator will compute your tax liability.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard rate cut-off point?
A: The income level up which you pay tax at 20%. For 2023, it's €36,800 for a single person (different for married couples).

Q2: Can I deduct mortgage principal payments?
A: No, only the interest portion of mortgage payments is deductible (with certain restrictions).

Q3: Are there different USC rates?
A: Yes, USC has multiple bands (0.5% up to €12,012, 2% up to €22,920, etc.). The calculator automatically applies the correct rates.

Q4: Do I need to register as a landlord?
A: Yes, all landlords must register with the Residential Tenancies Board (RTB).

Q5: When is rental income tax due?
A: Through self-assessment system - preliminary tax by October 31st, balance by following October 31st.