Rent A Room Relief

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 a certain limit in a tax year. This is called the Rent A Room Relief.

Who can avail of the relief?

The Rent A Room Relief applies only to individuals. It does not apply to companies or partnerships.

However, it can apply where sums arise to more than one individual, for example, a

husband and wife, where there is no partnership.

Relief not due – Payments made by family members

An individual cannot avail of Rent A Room Relief in respect of payments for

accommodation in the family home by a child of the individual, or the individual’s

civil partner, regardless of whether or not the child has claimed tax relief on the rent

paid.

Exempt amount

Since 1 January 2015, the annual limit on exempt income is €12,000. From 1 January

2008 to 31 December 2014 it was €10,000, and from 1 January 2002 to 31 December

2007 it was €7,620. Where more than one individual is entitled to the income, the

limit is divided equally between them.

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