Danny Healy-Rae
Ceist:280. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance for an update regarding the rent-a-room tax relief (details supplied); and if he will make a statement on the matter. [11287/26]
Amharc ar fhreagraThursday, 12 February 2026
Ceisteanna (280)
Freagraí scríofa
Rent-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 her/his 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 are treated for income tax purposes as having neither profits nor losses from the payment for that accommodation.
In accordance with section 216A TCA, an individual who lets a room or rooms in their sole or main residence as residential accommodation may be exempt from income tax, PRSI and USC in respect of income from the letting where the aggregate of the gross rents and any sums for meals or other services supplied with the letting does not exceed the threshold at present of €14,000 per year. Although the income is exempt it must be included in the individual’s tax return for the year in question.
Revenue advise that ‘sole or main residence’ is best described as an individual’s home during the year of assessment. The room or rooms can comprise a self-contained unit within the residence such as a basement flat or a converted garage attached to the residence, but relief does not apply if the room or rooms occupied by the tenant is/are adjacent to but not attached to the individual’s residence.
Revenue further advise that landlords are generally required to register details of their residential tenancies with the Residential Tenancies Board (RTB), including, for example, where the tenancy relates to a self-contained residential unit in the landlord’s own residence. However, the requirement to register a tenancy does not apply to owner-occupied homes.
It is assumed that the question on the ‘6-year rule’ refers to the “Tenancy of Minimum Duration”. I would note that this is beyond my direct remit as Minister for Finance as it is a matter for the Minister for Housing, Local Government and Heritage in the first instance. Further questions regarding RTB registration requirements would be best directed to the Minister for Housing, Local Government and Heritage.
Further details in respect of rent-a-room relief can be found in Tax and Duty Manual Part 07-01-32 on the Revenue's website at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-07/07-01-32.pdf.