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If you rent out a room (or rooms) in your own home, you can earn up to €14,000 a year completely tax-free under Rent-a-Room Relief. The relief applies to your principal private residence — and if your rental income goes over €14,000, the entire amount becomes taxable, not just the excess.
What is Rent-a-Room Relief?
Rent-a-Room Relief is a tax exemption that lets you earn rental income from letting a room in your home without paying income tax, PRSI or USC on it, as long as your gross income stays within the annual limit of €14,000.
Who qualifies?
- The property must be your principal private residence — the home you normally live in.
- You must actually occupy the property as your only or main residence.
- The room must be used for residential purposes, not as an office or business.
- The relief is available to homeowners and, in some cases, to tenants who sub-let a room.
The €14,000 limit
The €14,000 limit is a cliff-edge, not a taper. If your gross rental income is €14,000 or less, it is all tax-free. If it is even €1 over €14,000, the whole amount becomes taxable. You must also file an income tax return if your income exceeds the limit.
Does it apply to short-term lets (Airbnb)?
Short-term guest accommodation in your home can qualify for Rent-a-Room Relief in certain circumstances, but the rules are more complex. For example, letting a self-contained unit on a short-term basis generally does not qualify. If you let through platforms such as Airbnb, check the position carefully or get advice first.
What about a self-contained unit (granny flat)?
A self-contained unit that is attached to, or forms part of, your home — such as a basement flat or a converted garage — can qualify for the relief. A separate, detached property cannot.
How to claim it
If your income is below the €14,000 limit you do not need to declare anything. If it is above the limit, you must register for self-assessment, report the full rental income on your annual income tax return and pay tax on all of it.
Frequently asked questions
How much can I earn tax-free with Rent-a-Room Relief?
Up to €14,000 per year. If your income goes above this, the full amount becomes taxable.
Can I rent out a self-contained unit?
Yes, if it is part of or attached to your home (such as a granny flat). A separate, detached property does not qualify.
Do I need to declare Rent-a-Room income?
Not if it is €14,000 or less. Above that, you must declare and pay tax on the full amount.
Does Airbnb income qualify?
Short-term lettings in your home can qualify in some cases, but a self-contained unit let short-term generally does not. Get advice before relying on the relief.
Rent-a-Room Relief is a simple, generous exemption — but the cliff-edge rule catches many people out. If you are unsure whether your letting qualifies, or you have gone over the limit, talk to Bradán Accountants and we will sort it out.
Sources
- Revenue.ie – Rent-a-Room Relief
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