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% or 40%), PRSI (Pay Related Social Insurance), and USC (Universal Social Charge).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Rental Income — Total rental income before expenses
• Allowable Expenses — Deductible expenses related to the rental property
• Tax Rate — 20% (standard rate) or 40% (higher rate)
• PRSI — Pay Related Social Insurance (typically 4%)
• USC — Universal Social Charge (typically 8%)

3. Importance of Rental Tax Calculation

Details: Accurate tax calculation helps landlords comply with Irish tax laws, plan finances, and avoid penalties for underpayment. It's essential for annual tax returns (Form 11) and Revenue compliance.

4. Using the Calculator

Tips: Enter gross rental income and all allowable expenses in EUR. Select the appropriate tax rate (20% or 40%) based on your total income. Default PRSI and USC rates are provided but can be adjusted if needed.

5. Frequently Asked Questions (FAQ)

Q1: What expenses are allowable against rental income?
A: Mortgage interest (up to 75%), repairs, insurance, property tax, management fees, and certain capital allowances.

Q2: When is rental income tax due in Ireland?
A: Through the self-assessment system - preliminary tax by October 31st and balance by October 31st following the tax year.

Q3: What's the difference between 20% and 40% tax rates?
A: The 20% rate applies to income below your standard rate cut-off point. The 40% rate applies to income above this threshold.

Q4: Are there any tax reliefs available?
A: Yes, including mortgage interest relief (phased out by 2025) and certain capital allowances for rental properties.

Q5: Do I need to register with Revenue as a landlord?
A: Yes, all landlords must register with Revenue and file an annual tax return (Form 11) for rental income.