Minister for Finance Simon Harris presented Ireland's Budget 2027 on 6 October 2026. Most of the attention went to income tax bands and welfare rates, but a few measures matter directly to renters and to people who let property on a small scale. Here is what was announced and when each change takes effect.

One caveat first. Most of these measures still have to be written into law through Finance Bill 2026, which is going through the Oireachtas now. The details below come from the Budget announcements and early summaries, so the final wording could still change.

Renters: the Rent Tax Credit goes up by €150

The Rent Tax Credit rises from €1,000 to €1,150 a year for a single person. For a jointly assessed married couple or civil partners it goes from €2,000 to €2,300. The new amounts apply to the 2027 and 2028 tax years, according to Citizens Information.

The basic rules stay the same. The credit is worth 20% of the rent you pay, up to the cap. You have to be paying income tax for it to help you, and private tenancies generally need to be registered with the Residential Tenancies Board.

Not everyone was impressed. One renter in Cork called the increase "a drop in the ocean". Even so, if you rent and pay tax, it's an extra €150 that you will only get if you claim it.

Room-letters: the tax-free limit rises to €16,000

Rent-a-Room Relief lets you rent rooms in the home you live in without paying income tax, USC or PRSI on the rent, as long as you stay under the annual limit. From 1 January 2027 that limit goes up from €14,000 to €16,000. That works out at roughly €1,333 a month.

There is also something new. According to Walkers' Budget summary, the relief will also cover newly installed detached garden units of 32 to 45 m², backdated to 27 July 2026. Reports say these units only qualify if they meet every condition of the new planning-permission exemption for such buildings, so check this before you build or let one.

Two existing rules still catch people out:

  • The limit is a cliff edge, not a threshold. If your gross room-letting income goes even slightly over the limit, the whole amount becomes taxable, not just the part above it.
  • Short stays are excluded. Since 2019 the relief has not applied to lets of 28 consecutive days or less, so most short-term booking-platform income doesn't count.

Capital gains tax and Help to Buy

Two other changes affect anyone thinking of selling or buying:

  • Capital gains tax falls from 33% to 31% for disposals on or after 7 October 2026. Development land stays at 33%. If you sell a rental property, the date of disposal decides which rate applies, so ask your adviser how that date is set in your case.
  • Help to Buy for first-time buyers of new or self-built homes rises from €30,000 to €35,000, with effect from 7 October 2026. The €500,000 property price cap stays the same.

What didn't come in

If you own one or two rental properties, the Budget gave you little beyond the CGT cut. Landlord groups had asked for rental property to be taxed more like a business, with wider deductions for rental expenses and lower taxes on small landlords. None of that was announced.

The Irish Property Owners' Association criticised the Budget for doing nothing to stop small landlords leaving the market. Rental profits are still taxed at your marginal rate, and mortgage capital repayments still can't be deducted.

What to do now

The changes start on 1 January 2027, so you have time to get your paperwork in order.

If you rent:

  • Keep your rent receipts or bank statements showing each payment, along with your tenancy agreement and the landlord's RTB registration details. Revenue can ask for proof when you claim the credit.
  • Claim through myAccount on Revenue's website. If you haven't claimed for earlier years, check whether you still can.

If you let rooms:

  • Keep a running total of the gross rent you receive in each calendar year, not just a monthly figure. Include any payments for services such as meals, laundry or utilities that you charge for, since these count towards the limit.
  • If your 2027 total is likely to be near €16,000, plan ahead. Going over by a few euro makes the whole amount taxable.
  • If you're thinking about a garden unit, confirm that it meets the planning-exemption criteria before you count on the relief.

If you keep your lettings in LeasingTrack, the income records for each property show how much you have received so far this year. That makes it easier to see how close you are to the limit.

Everyone's tax position is different, and the Finance Bill may still change the details. Before you rely on any of these figures, check your own case with a tax adviser or an accountant.