Landlord Tax Relief Calculator Ireland 2026
Calculate tax relief available to Irish landlords on mortgage interest and allowable expenses. Enter your rental income, deductions, and tax rates to see your total tax liability including Income Tax, PRSI, and USC, plus your net rental income after tax.
How Irish Landlord Tax Relief Works in 2026
Irish landlord tax relief is a set of deductions that reduce the taxable portion of rental income. Under Revenue rules, landlords can deduct mortgage interest and a range of allowable expenses from gross rental income before tax is calculated. The remaining taxable profit is subject to Income Tax at either 20% or 40% depending on your marginal rate, plus PRSI and USC. Since 2019, mortgage interest on residential rental properties is 100% deductible, restoring the full relief that was gradually reduced during the financial crisis. To qualify for mortgage interest deduction, the property must be registered with the Residential Tenancies Board (RTB). This calculator applies 2026 Irish tax rules based on guidance from revenue.ie and citizensinformation.ie. Last updated April 2026.
Allowable Expenses for Irish Rental Properties
Landlords in Ireland can claim a comprehensive range of expenses against rental income. These include insurance premiums for the rental property, letting agent and property management fees, accountancy fees for preparing rental accounts, legal fees related to rent collection, advertising costs for finding tenants, ground rent, service charges, and the cost of routine repairs and maintenance. Importantly, only repairs that maintain the property in its current condition are deductible. Capital improvements such as extensions, conversions, or structural upgrades are not allowable revenue expenses, though they may reduce your Capital Gains Tax liability when you sell the property. For furnished properties, wear and tear on furniture and fittings can be claimed at 12.5% of the original purchase cost per year over eight years, allowing you to recover the full cost.
Mortgage Interest Deduction — 2026 Rules
The mortgage interest deduction is typically the largest single relief available to Irish landlords. As of 2026, 100% of mortgage interest paid on a residential rental property loan is deductible against rental income. This full deduction was restored after years of restrictions introduced during the financial crisis, when the deductible percentage was reduced to as low as 75%. The key condition for claiming this relief is that the tenancy must be registered with the RTB. Without RTB registration, no mortgage interest deduction is available. The interest must relate to a loan used to purchase, improve, or repair the rental property. Interest on loans used for other purposes, even if secured against the rental property, does not qualify.
Tax-Efficient Strategies for Irish Landlords
Several strategies can help Irish landlords minimise their tax liability legally. Pre-letting expenses of up to €5,000 are deductible for properties that have been vacant for 12 months or more, covering repair and redecoration costs incurred before re-letting. Capital allowances on furniture and fittings at 12.5% per year over eight years can provide steady annual deductions for furnished rentals. Keeping detailed records of all expenditure is essential, as Revenue may audit rental income returns. Landlords should also consider the timing of repairs and maintenance to optimise deductions across tax years. Registration with the RTB is not optional if you wish to claim mortgage interest relief. For properties in your principal private residence, the Rent-a-Room relief offers up to €14,000 tax-free annually, though this applies only to owner-occupier arrangements and not investment properties covered by this calculator. Sources: revenue.ie, citizensinformation.ie, rtb.ie.