Budget 2027 includes a welcome change for homeowners who rent out a room in their home.
From 1 January 2027, the tax-free limit under Ireland’s Rent-a-Room Relief will increase from €14,000 to €16,000 per year.
That means a homeowner who qualifies for the scheme can receive up to €16,000 in gross rental income without paying Income Tax, USC or PRSI on that income. Under the existing rules, going over the threshold can result in the entire rental income becoming taxable rather than just the excess.
The change is intended to encourage more homeowners to make spare rooms available and increase accommodation supply.
https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rent-a-room-relief/qualifying-conditions.aspx
