Dáil Éireann Debate, Thursday - 15 January 2026
311. Deputy William Aird asked the Tánaiste and Minister for Finance if he will consider extending the €14,000 tax-free rental income relief to include rental arrangements involving family members, in recognition of current housing pressures and the need to support intergenerational living; and if he will make a statement on the matter. [3134/26]
View answerRent-a-Room relief, which is provided for in section 216A Taxes Consolidation Act 1997 (TCA), was introduced in 2001 with the aim of increasing the availability of rented residential accommodation. The relief acts as an incentive to encourage individuals to let rooms in their principal private residence as residential accommodation in order to bring about an increase in the availability of rental accommodation.
Section 216A TCA provides that, where an individual rents a room or rooms in their home as residential accommodation, and the gross rent received (including sums for food, laundry or similar goods and services) does not exceed €14,000 in the tax year, they treated for income tax purposes as having neither profits nor losses from the payment for that accommodation.
The relief is not available where the sums received are from a child to a parent, or from a child to their parent’s spouse or civil partner. However, there is no restriction where rent is paid by other family members, for example, a niece or nephew.
Further details in respect of the relief including comprehensive guidance on the full range of conditions which must be met and how to avail of the relief, can be found in Tax and Duty Manual Part 07-01-32 - Rent-A-Room Relief at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf.
