If you rent out a room (or rooms) in your home to private tenants, the rental income you earn will be exempt from income tax, provided this income does not exceed €10,000 in a tax year. This is called the rent a room relief.

To get rent a room relief:

The total (gross) rent you get from your tenant (or tenants), which includes sums the tenant pays for food, utilities, laundry or similar goods and services, cannot exceed €10,000. If you get rental income over and above this amount, you are not entitled to the relief.

Your home must be in Ireland and must be occupied by you during the year of assessment as your principal private residence.

How to apply

Complete a Tax Return Form 12 (pdf) at the end of the tax year indicating that you have received rental income for rent a room relief. Form 12 is available from your local tax office.

Your completed annual tax return should be returned to your local tax office.

For more information Jason or Catherine at McDowell & Co Accountants, Stephen St Sligo, Tel: 071 9147580 email: jason@mcdowellaccountants.ie  where we can offered you advice on rent a room relief, you can also visit A guide to rental income (IT 70).