Housing tax credits and reliefs
- Introduction
- Rent Tax Credit
- Mortgage interest tax credit
- Rent-a-room relief
- Tax when providing short-term guest accommodation
- Tax relief for landlords
- Tax when transferring ownership
- Where to apply
Introduction
You can claim tax relief on some housing incomes and expenses and these are outlined below.
There is also a tax refund scheme, which is designed to help first-time buyers of newly built homes to get the required deposit. For more information, see the Help to Buy (HTB) incentive.
For information about Local Property Tax, see Exemptions from Local Property Tax.
Rent Tax Credit
You can claim an income tax credit for rent you have paid.
For 2024, the amount of the credit is 20% of your rent payments in the year, up to a maximum of:
- €750 for an individual
- €1,500 for a couple who are jointly assessed for tax
Read more about the Rent Tax Credit and how to claim it.
Mortgage interest tax credit
A new mortgage interest tax relief was announced in Budget 2024.
To qualify, you must have had an outstanding mortgage balance of between €80,000 and €500,000 on 31 December 2022.
The tax relief is 20% of the increased interest you paid on your mortgage in 2023 when compared with the amount you paid in 2022. The relief is capped at €1,250.
Rent-a-room relief
If you rent out a room or flat in your home, you are exempt from income tax on the amount that your tenant pays you for rent and other services, up to €14,000 in a tax year.
Rent-a-room relief applies only to residential tenancies, not to short-term guest arrangements. The relief can also apply to a self-contained unit (such as a basement flat) if it is part of your home or is directly attached to it.
You are not eligible for Rent-a-room relief if you are renting the room to your son or daughter.
Tax when providing short-term guest accommodation
If you have income from providing accommodation to occasional visitors for short periods, for example through an online accommodation booking site, this income is not considered to be rental income. This is because the visitors use the accommodation as guests rather than tenants. Revenue have published a guidance manual on how such income is treated for tax purposes (pdf).
Tax relief for landlords
You can deduct the interest on mortgages used to purchase, improve or repair rented residential property when working out your rental income for tax purposes.
You must show that you have registered all tenancies in the property with the Residential Tenancies Board (RTB). Interest can only be deducted during the period in which the property is let.
The amount of interest you can deduct on these mortgages has increased in recent years:
- Before 2017, it was 75% of the interest
- In 2017, it was 80% of the interest
- In 2018, it was 85% of the interest
- From January 2019, it is 100% of the interest
Interest is treated as accruing on a daily basis and the date the loan was taken out is not relevant.
Tax relief on rental income 2024–2027
A temporary rental income tax relief will be introduced in 2024. The relief will be available against some rental income at the standard rate of 20% each year. It will be available from 2024 to 2027 and will only apply if the landlord keeps their rental property in the rental market for the 4 years. Landlords can get 20% of:
- €3,000 for 2024
- €4,000 for 2025
- €5,000 for 2026 and 2027
The relief will reduce the tax due on rental income by up to €600 in 2024, €800 in 2025, and €1,000 in 2026 and 2027. The relief will be clawed back if the landlord leaves the rental market during this time.
Tax when transferring ownership
When ownership of a property is transferred, the financial gains are usually liable to tax but some exemptions and reliefs apply.
For instance, when you sell a property, any profit you make over the amount that you paid for it would usually be liable for Capital Gains Tax. There is however an exemption if the property is the main residence where you live. Read more about Capital Gains Tax .
If you get property as a gift or inheritance, you may have to pay Capital Acquisitions Tax. A number of reliefs and exemptions apply including if the transfer is between spouses or civil partners or, in certain circumstances, if you get a house that has been your main residence. Read more about Capital Acquisitions Tax.
You may also have to pay stamp duty when ownership of a property is transferred but there are some exemptions. Read more about stamp duty.
Where to apply
You can claim tax credits online.
Contact information for Revenue regional offices is available on the Revenue website.