Your rental profit is €10,800 after deductions. Because your total income is above the €42,000 standard rate band, €10,800 of rental income is taxed at the 40% marginal rate. Adding USC and PRSI at 4%, your effective rate on rental income is 47.0%. You take home €5,724 of your €10,800 profit.
Tax breakdown
Taxable rental profit
€10,800
Income Tax at 40% marginal rate
€4,320
USC marginal on rental portion
€324
PRSI 4% Class S
€432
Net rental income after tax
€5,724
Effective rate (tax / gross rental)
47.0%
Frequently asked questions
What tax do I pay on rental income in Ireland?
Rental profit (income minus allowable expenses) is added to your other income and taxed at your marginal rate — 20% if your total income is within the standard rate band (€42,000 for a single person), or 40% on the portion above it. You also pay USC at your marginal USC rate and PRSI at 4% (Class S) on rental profit.
What expenses can I deduct from rental income?
Allowable deductions include: mortgage interest (100% if PRTB/RTB registered), repairs and maintenance (not improvements), insurance, letting agent fees, accountancy fees, and the RTB registration fee. Capital expenditure (extensions, new kitchens) is not deductible but may qualify for wear-and-tear allowances over 8 years.
Why does PRTB / RTB registration matter for tax?
Landlords who register their tenancy with the Residential Tenancies Board (RTB, formerly PRTB) can deduct 100% of mortgage interest against rental income. Landlords who are not registered lose this deduction entirely, which can significantly increase their tax bill.
Do I need to file a tax return for rental income?
Yes. If you have rental income, you must file a Form 11 (self-assessed) tax return each year, even if PAYE is your main income source. The return is due by 31 October (or mid-November for ROS users). Failure to file can result in surcharges.
Is there any relief available for landlords in 2025?
The Residential Premises Rental Income Relief (RPRIR) introduced in Budget 2024 provides an income tax credit of €1,000 in 2024, rising to €1,500 in 2025, for landlords who keep their properties in the rental market. Conditions apply — properties must be in the private rental sector and landlords must not give notice to quit during the relief period.
Rates based on 2025 Irish tax year. Standard rate band shown for single individuals — married couples have a different band. USC and PRSI calculations simplified for illustration. Does not account for rent tax credits, vacancy refund schemes, or other reliefs. Not financial or tax advice.