Rent a Room Relief: Who Qualifies and What You Get
Learn if you can rent out a spare room in your home without paying tax on the income you receive.
This scheme allows homeowners to earn extra money by renting out a spare room in their main home without having to pay tax on that income.
Who it's for
This scheme is designed for homeowners who have an extra room in the property they live in as their primary residence. To qualify, you must be living in the home yourself while renting out the additional space.
What you get
The benefit of this relief is that the income you receive from renting out a room in your primary home can be exempt from tax. However, even if the income you receive is tax-free, you are still required to declare it on your tax return to remain compliant with the Revenue Commissioners.
What it costs you
There is no cost to use this scheme. You do not need to pay a fee to access this tax relief, though you must spend time keeping records and filing your tax returns correctly.
The catch to know
The most important thing to remember is that this relief is intended for renting out a room in your actual home. It does not apply to short-term lettings, such as those managed through platforms like Airbnb.
How to apply
- Verify that the room you intend to rent is in your primary residence.
- Maintain accurate and clear records of all rental income received.
- Include the details of your rental income when you file your tax return.