Garden rooms and Rent-a-Room Relief: who qualifies from 2026

What changed

Rent-a-Room Relief used to cover only rooms inside your home. Budget 2027 extends it to some detached units in the back garden of your main home, backdated to 27 July 2026.

The change still has to pass in the Finance Bill, and Revenue's own page hadn't been updated in October 2026. Check revenue.ie before you rely on it.

Which garden units count

According to Citizens Information, the unit must be in the back garden of the home you live in, built or placed there on or after 27 July 2026, between 32 and 45 square metres, and built under the new planning exemption for these units (which includes telling the council 14 days before work starts).

Garden units that were already there before 27 July 2026 don't qualify.

The usual Rent-a-Room rules still apply

The limit is €14,000 a year for 2026 and €16,000 from 1 January 2027, including everything the person pays you. Go over it and the whole amount is taxable. Short lets of 28 days or less don't count. Our Rent-a-Room Relief guide has the full conditions.

Tenancy rules

From 31 July 2026, these rear-garden units are outside the Residential Tenancies Acts, like a room in your own home. Agree the rent, what's included, the deposit and the notice in writing anyway.

Common questions

Does Rent-a-Room Relief cover a garden room?

From 27 July 2026, some new garden units qualify: in the back garden of your main home, 32 to 45 m², built under the new planning exemption on or after that date. It's subject to the Finance Bill.

What about a garden room built before July 2026?

It doesn't qualify for the relief.