Budget 2027 announcements. Implementation dates vary. · By K Imports
Budget 2027: Rent-a-Room relief and auxiliary dwellings
The €16,000 ceiling from 2027 and the announced extension to certain garden or auxiliary dwellings.
Sources checked .
What was announced
- Ceiling
- The rental income ceiling rises from €14,000 to €16,000 from 1 January 2027. The Department states that a single €16,000 ceiling applies to all qualifying Rent-a-Room income per taxpayer unit, not separately to every room or structure.
- Auxiliary dwellings
- The announced extension covers certain Designated Auxiliary Dwellings installed after 27 July 2026 and consistent with the 2026 Planning Regulations, S.I. 340 of 2026. It does not make every garden building or detached rental eligible.
- Planning is not tax commencement
- Auxiliary-dwelling relief is not verified in force. Budget 2027 section 3.2 announces certain Designated Auxiliary Dwellings installed after 27 July 2026 and consistent with S.I. 340/2026, with one combined €16,000 ceiling for all Rent-a-Room income per taxpayer unit, not a separate allowance per structure. Planning compliance alone does not establish tax eligibility. The operative installation-date, planning, residence, relationship, aggregate-income and tax commencement conditions must be verified before this calculator can support that scope. The planning regulations came into operation on 27 July 2026; this does not establish the tax relief's start date or confirm a dwelling qualifies.
- All-or-nothing condition
- The existing relief tests qualifying gross receipts against the ceiling. Crossing the applicable ceiling is not simply tax on the excess. The year, accommodation eligibility and total receipts all matter.
Practical next steps
- Separate 2026 and 2027 receipts and use the matching annual ceiling.
- Aggregate all relevant receipts rather than assigning a new allowance to each room or structure.
- Check installation records and the Class 3A planning conditions, including the required planning-authority notification. Do not assume planning permission alone meets the announced exempted-dwelling scope.
- Wait for the operative Section 216A amendment and tax commencement to be verified, including residence, relationship and taxpayer-unit aggregation rules, before treating an auxiliary dwelling as tax-exempt.
Related calculators
The calculator offers verified 2026 and announced 2027 ordinary-room planning profiles, retaining existing equal-sharing rules as a 2027 assumption. Detached/designated auxiliary dwellings are excluded; selecting that accommodation scope produces no estimate. This guide does not certify dwelling eligibility or enacted commencement.