Rental Income Tax Calculator Ireland Deloitte

Rental Income Tax Calculation:

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

Gross Rental Income:

EUR

Allowable Expenses:

EUR

Tax Rate (%):

PRSI (%):

USC (%):

Taxable Income:

Income Tax:

PRSI:

USC:

Total Tax Due:

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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 includes income tax, PRSI (Pay Related Social Insurance), and USC (Universal Social Charge).

2. How Does the Calculator Work?

The calculator uses the following formulas:

Where:

Gross Rental Income — Total rental income before expenses
Allowable Expenses — Deductible costs associated with the rental property
Tax Rate — Standard rate (20%) up to cut-off point, higher rate (40%) above
PRSI — Pay Related Social Insurance (typically 4%)
USC — Universal Social Charge (varies by income)

3. Understanding Allowable Expenses

Details: Allowable expenses may include mortgage interest (restricted), property maintenance, management fees, insurance, and other costs directly related to the rental property.

4. Using the Calculator

Tips: Enter your gross rental income and all allowable expenses in EUR. The calculator will compute your taxable income and the various tax components based on current Irish tax rates.

5. Frequently Asked Questions (FAQ)

Q1: What's the standard tax rate for rental income?
A: The standard rate is 20% up to the standard rate cut-off point (€35,300 for single individuals in 2023), with 40% on amounts above this.

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

Q3: Are there any tax credits available?
A: You may be eligible for certain tax credits depending on your personal circumstances.

Q4: How is PRSI calculated on rental income?
A: PRSI is typically calculated at 4% of your taxable rental income.

Q5: What USC rates apply to rental income?
A: USC rates vary from 0.5% to 8% depending on your total income level.