Calculate Tax On Rental Income Ireland Today

Irish Rental Income Tax Calculation:

\[ \text{Taxable Income} = \text{Gross Rental Income} - \text{Allowable Expenses} \] \[ \text{Tax} = (\text{Taxable Income} \times \text{Tax Rate}) + (\text{Taxable Income} \times \text{PRSI}) + (\text{Taxable Income} \times \text{USC}) \]

Taxable Income:

Income Tax:

PRSI:

USC:

Total Tax Liability:

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1. What is Irish Rental Income Tax?

Rental income tax in Ireland is calculated on your taxable rental income after deducting allowable expenses. The tax consists of income tax (20% up to the standard rate cut-off point, 40% above), PRSI (4%), and USC (variable rates).

2. How Does the Calculator Work?

The calculator uses the following formulas:

\[ \text{Taxable Income} = \text{Gross Rental Income} - \text{Allowable Expenses} \] \[ \text{Tax} = (\text{Standard Rate Amount} \times 20\%) + (\text{Higher Rate Amount} \times 40\%) \] \[ \text{PRSI} = \text{Taxable Income} \times 4\% \] \[ \text{USC} = \text{Taxable Income} \times \text{USC Rate} \]

Where:

Standard Rate Amount — Lower of taxable income or standard rate cut-off point
Higher Rate Amount — Taxable income above standard rate cut-off point
PRSI — Pay Related Social Insurance at 4% for rental income
USC — Universal Social Charge at applicable rates

3. Understanding Rental Income Taxation

Details: In Ireland, rental income is subject to income tax, PRSI, and USC. Allowable expenses can be deducted from gross rental income before calculating tax. The standard rate cut-off point is €36,800 for a single person (2023).

4. Using the Calculator

Tips: Enter your gross rental income (before expenses), total allowable expenses, and your standard rate cut-off point. The calculator will compute your tax liability including income tax, PRSI, and USC.

5. Frequently Asked Questions (FAQ)

Q1: What expenses are allowable against rental income?
A: Mortgage interest (limited), repairs, insurance, property tax, management fees, and certain other costs directly related to renting the property.

Q2: Is there a tax-free allowance for rental income?
A: No, all rental income is taxable after allowable expenses are deducted.

Q3: How is mortgage principal treated for tax purposes?
A: Mortgage principal repayments are not deductible - only the interest portion (with certain limits).

Q4: When is rental income tax due?
A: Under self-assessment, tax is due by October 31st following the tax year (or November if filing online).

Q5: Are there different USC rates?
A: Yes, USC rates vary from 0.5% to 8% depending on income levels. The calculator uses a standard 4.5% rate.