Rent-a-Room Relief in Ireland: €14,000 a year tax-free, rising to €16,000 in 2027
How homeowners can rent a spare room tax-free, who qualifies, and the mistakes that cost people the relief.
What the relief is
Rent-a-Room Relief lets you earn up to €14,000 a year (for 2026) from renting a room (or rooms) in your own home without paying income tax, PRSI or USC on it, as long as you meet Revenue's conditions. Budget 2027 raises the limit to €16,000 a year from 1 January 2027.
It suits Monday-to-Friday digs, students during the academic year, and someone staying long-term in a spare room.
The main conditions
The room must be in your principal private residence: the home you live in yourself.
The person must be using it as their residential accommodation. Short-term guests, for example through online booking platforms, generally don't qualify.
It doesn't apply if the person renting is your child or your civil partner's child.
The limit (€14,000 for 2026, €16,000 from 2027) includes everything they pay you for the room: rent and any charges for meals, laundry or bills.
Watch the limit
If what you receive goes over the limit in a year (€14,000 for 2026, €16,000 from 2027), you don't just pay tax on the extra: the whole amount becomes taxable as rental income. If you are close to the limit, check the figures before you agree a price.
You still have to declare it
Even when no tax is due, you must declare the income on your tax return (through myAccount for PAYE workers, or ROS if you file a Form 11). Keep a simple record of what you received and when.
Rent-a-Room Relief doesn't affect your home being treated as your main residence for Capital Gains Tax, and the person staying is usually a licensee, not a tenant, so you don't register with the RTB.
Advertising your room
Post your room on StayLister for free: choose "Mon–Fri digs" or "Long-term", say what's included (bills, meals, laundry), and add clear photos of the actual room. Every ad is checked before it goes live.
Common questions
How much can I earn tax-free under Rent-a-Room Relief?
Up to €14,000 a year for 2026 from renting a room in your own home, without paying income tax, PRSI or USC on it, if you meet Revenue's conditions. Budget 2027 raises the limit to €16,000 a year from 1 January 2027.
What happens if I go over the Rent-a-Room limit?
You don't just pay tax on the extra: the whole amount becomes taxable as rental income. The limit includes everything the person pays you for the room, including meals, laundry or bills.
Do I have to declare Rent-a-Room income if no tax is due?
Yes. You must declare it on your tax return, through myAccount for PAYE workers or ROS if you file a Form 11.