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Rent-a-room relief calculator

2027 limit announced

Income from letting a room in your home is tax free up to €14,000 a year (€16,000 from 2027, announced). Over the limit, all of it is taxed. See whether you qualify and what the relief is worth to you.

Tax year
Tax status
Tax saved by the relief 
Gross room income
 
Limit
 
Room under the limit
 
You keep
 
If the income were taxed

This is an estimate for general information, based on the rates and rules described on this page. It is not financial, tax or legal advice and does not take account of your full circumstances. Check your own position with your lender, solicitor or Revenue before making a decision. Terms of use.

Illustration for the rent-a-room relief calculator

Worked example

A student pays €12,000 rent and €1,200 for meals in 2026. The total, €13,200, is under the €14,000 limit, so it is all tax free. For someone on €55,000, taxing it as rental income (less €800 of costs) would have cost €5,857.45 in income tax, USC and PRSI. That is what the relief saves.

A lodger pays €13,000 rent and €1,500 for meals. The total of €14,500 is over the limit, so all of it is taxed. After €800 of costs, the tax is €6,471.54. This is the same as Revenue's example: the meals push the income over the limit.

How rent-a-room relief works

  • Add up everything the lodger pays you in the year: rent, meals, laundry, cleaning and similar services. No expenses come off for the limit test.
  • If the total is €14,000 or less (€16,000 from 2027), and the conditions are met, it is exempt from income tax, USC and PRSI.
  • If it is more, all of it is taxed under the normal rental rules, with expenses and wear and tear deducted. This calculator works out that tax at your marginal rate, using your salary.
  • The room must be in your only or main home, used as a home by the lodger. Rent from your child, payments from your employer and short lettings of 28 days or less (other than students and some longer weekly stays) do not qualify.

Budget 2027 also extends the relief to certain designated auxiliary dwellings after 27 July 2026. The details will be in the Finance Bill.

Sources

Rates last checked 10 October 2026. Every figure is listed on rates and sources.

Figures marked as announced come from Budget 2027 and are not law until the Finance Act or Social Welfare Act that brings them in is passed.

Questions

How much can I earn tax free from renting a room?
Up to €14,000 a year in 2026, rising to €16,000 in 2027 under Budget 2027 (announced, not yet law). The limit covers rent plus anything the lodger pays for meals, laundry, cleaning or similar services. Within the limit there is no income tax, USC or PRSI on it.
What happens if I go over the limit?
All of the income becomes taxable, not just the part over the limit. It is then taxed as rental income: you can deduct expenses and wear and tear, and the profit is taxed at your marginal rate plus USC and PRSI.
Can I claim it if my son or daughter pays me rent?
No. Rent paid by your child (or stepchild through your spouse or civil partner) for living in the family home does not qualify. Rent from other relatives, such as a niece or nephew, can qualify.
Does it apply to Airbnb or short stays?
No. Lettings of 28 consecutive days or less do not qualify, unless the guest is a student, a person who is incapacitated, or someone who stays at least 4 days a week for at least 4 weeks (such as weekday digs). Short-term guest income is taxed as other income.
Do I need to own the house?
No. The room must be in your only or main home, but you can be renting it yourself. A self-contained unit such as a basement flat or converted garage can qualify if it is attached to and part of your home. A separate building next to the house does not.
Do I still need to file a tax return?
Yes. The relief applies automatically, but you must enter the income as exempt income on your Form 11 or Form 12 for the year. You can choose to have it taxed as normal rental income instead, for example to use expenses to create a loss.
What if two of us own the house?
The limit is shared equally between everyone entitled to the income. For a couple both receiving the rent, each has half of the limit, so the household total is the same.

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