Rental Income Tax Calculator Ireland Salary

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 (4%):

USC:

Total Tax Liability:

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1. What is Rental Income Tax?

Rental income tax in Ireland is the tax payable on profits from renting out property. It's calculated by deducting allowable expenses from gross rental income and applying the appropriate tax rates, PRSI, and USC.

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:

Gross Rental Income — Total rental income before expenses
Allowable Expenses — Deductible costs related to the rental property
Standard Rate Cut-off — €36,800 (2023 standard rate band)
PRSI — Pay Related Social Insurance at 4%
USC — Universal Social Charge at varying rates

3. Importance of Rental Income Tax Calculation

Details: Accurate tax calculation ensures compliance with Irish revenue requirements, helps with financial planning, and avoids penalties for underpayment.

4. Using the Calculator

Tips: Enter your total rental income and all allowable expenses. The calculator will show your taxable income and break down 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 other costs wholly related to the rental.

Q2: What's the standard rate cut-off point?
A: For 2023 it's €36,800 for a single person (different for married couples). The first €36,800 is taxed at 20%, balance at 40%.

Q3: Is PRSI always 4% on rental income?
A: Yes, Class S PRSI is 4% on rental profits for most taxpayers.

Q4: What USC rate applies to rental income?
A: USC rates vary from 0.5% to 8% depending on total income. The calculator uses a standard 4.5% rate.

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