100% of mortgage interest is deductible for registered landlords in Ireland
Your non-rental income affects marginal tax rate on rental
After-Tax Rental Income
€4,316.00
Tax on Rental
€3,984.00
Marginal Rate
0.4%
Effective Rental Rate
16.6%
How rental income is taxed in Ireland
Rental income is added to your other income and taxed at your marginal rate (20% or 40%). USC and PRSI also apply. Deductible expenses reduce your net rental income before tax is calculated.
Mortgage interest deductibility
100% of mortgage interest is deductible against rental income in Ireland, provided the property is registered with the Residential Tenancies Board (RTB). This is a key deduction for landlords.
Allowable deductions
Common deductions include mortgage interest, insurance premiums, letting agent fees, repairs and maintenance (but not improvements), accountancy fees, and costs of advertising for tenants.
Revenue-Aligned: Uses 2025-26 Irish tax rates. Property must be registered with the RTB for full interest deductibility.
How rental income is taxed and what expenses landlords can deduct
How is rental income taxed in Ireland?
Rental income is added to your other income and taxed at your marginal rate. If you are already in the 40% tax bracket, your rental income is taxed at 40% Income Tax plus 4% PRSI and up to 8% USC. That means up to 52% of your rental profit goes to tax. If your total income is below €42,000, the first portion is taxed at 20%.
What expenses can landlords deduct?
Allowable expenses include: mortgage interest (100% deductible), property insurance, management fees, repairs and maintenance (but not improvements), letting agent fees, advertising for tenants, legal fees, accountancy fees, and Local Property Tax (LPT). You can also claim wear and tear allowances on furniture and fittings at 12.5% per year over 8 years.
Can I deduct my full mortgage payment?
You can deduct 100% of the mortgage interest, but not the capital repayment. For example, if your monthly mortgage payment is €1,200 and €800 is interest and €400 is capital, you can only deduct the €800 interest portion. To claim mortgage interest, you must be registered with the Residential Tenancies Board (RTB).
Do I need to register with the RTB?
Yes. All private landlords must register each tenancy with the Residential Tenancies Board (RTB). Registration costs €40 per tenancy online. You must register within 1 month of the start of each tenancy. Failure to register means you cannot deduct mortgage interest from your rental income for tax purposes, and you may face fines.
What is the small-scale landlord tax relief?
From 2024, landlords who keep their property on the rental market can claim an income tax credit of up to €1,000 per property (rising to €1,000 in 2025). This applies to landlords who own 3 or fewer properties. You must keep the property rented for the full year and be registered with the RTB to qualify. The relief reduces your tax bill directly.
When do I file and pay my rental tax?
If you are PAYE only (employed) and earn rental income, you must file a Form 12 or Form 11. If your rental income is significant, Revenue may put you into the self-assessment system. You must pay preliminary tax by 31 October each year and file your annual return. Late filing attracts surcharges of 5% to 10% of your tax bill.
What about short-term lets like Airbnb?
Income from short-term lets (Airbnb, Booking.com) is taxable the same way as regular rental income. However, since 2019, you need planning permission in Rent Pressure Zones (most cities) to rent your entire home on a short-term basis for more than 90 days per year. You can share your own home without planning permission under the rent-a-room relief up to €14,000 per year tax-free.
What is the rent-a-room relief?
If you rent out a room (or rooms) in your own home, the first €14,000 of rental income per year is completely tax-free. This applies to room rentals to private tenants, not to short-term tourist lets. If your income exceeds €14,000, the entire amount becomes taxable (not just the excess). The room must be in your principal private residence.
Revenue-Aligned: Based on 2025 Revenue rates and thresholds. For personal advice, speak to a qualified tax adviser.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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