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.
Frequently Asked Questions
Can I deduct mortgage interest on my rental property in Ireland?
Yes, as of 2026 you can deduct 100% of mortgage interest paid on a residential rental property loan against your rental income. The key requirement is that the tenancy must be registered with the Residential Tenancies Board (RTB). Without RTB registration, no mortgage interest deduction is available. The interest must be on a loan used to purchase, improve, or repair the rental property.
What expenses can I claim as a landlord in Ireland?
Allowable expenses include mortgage interest (100% if RTB-registered), insurance premiums, property management and letting agent fees, accountancy fees, legal fees for rent collection, advertising costs, ground rent, service charges, and routine repairs and maintenance. Wear and tear on furniture is claimable at 12.5% of cost per year over eight years. Capital improvements such as extensions or conversions are not deductible as revenue expenses.
What is the effective tax rate on Irish rental income?
The effective tax rate depends on your marginal Income Tax rate (20% or 40%), PRSI (4% or exempt), and USC (0.5% to 11% depending on your band). For a higher-rate taxpayer paying 40% Income Tax plus 4% PRSI plus 4% USC, the combined marginal rate on rental profit is 48%. This calculator shows your exact effective rate based on your inputs.
Do I need to register with the RTB to claim mortgage interest?
Yes, registration with the Residential Tenancies Board (RTB) is mandatory to claim mortgage interest as a deduction against rental income. This applies to all private residential tenancies. Failure to register prevents you from claiming mortgage interest and may result in penalties. Registration also gives you access to RTB dispute resolution services.
Can I claim for property improvements?
No, capital improvements such as extensions, conversions, or structural upgrades are not deductible as revenue expenses against rental income. However, they may reduce your Capital Gains Tax (CGT) liability when you sell the property, as improvement costs can be added to the base cost of the property. Only routine repairs and maintenance that keep the property in its current condition are deductible.
What is the pre-letting expense deduction?
Pre-letting expenses of up to 5,000 euro are deductible for properties that have been vacant for 12 months or more. These cover repair, renovation, and redecoration costs incurred in the 12 months before the property is re-let. The property must be let for a qualifying period after the expenses are incurred. This relief is designed to encourage landlords to bring vacant properties back to the rental market.
How do I file rental income with Revenue?
Rental income must be declared on your annual tax return. If you are a PAYE worker with rental income, you may need to register for self-assessment and file a Form 11 return. Preliminary tax is due by 31 October each year, or mid-November if filing and paying online through ROS (Revenue Online Service). You must keep records of all rental income and expenses for at least six years in case of a Revenue audit.