Property · Calculator companion · By K Imports
Rent-a-room exemption check: practical guide
This guide explains how to use the Count.ie rent-a-room exemption check. Check ordinary-room relief using Revenue's published €14,000 ceiling, or compare the unconfirmed Budget 2027 €16,000 scenario. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Rent-a-room exemption check calculatorWhat to prepare
- Collect the purchase, loan, rental or project figures from dated documents.
- Distinguish purchase price, borrowing, one-off acquisition costs and recurring ownership costs.
- Check the property's use, tax year and any scheme eligibility against official guidance.
Understand the inputs
- Tax year / rules profile
- Revenue currently publishes €14,000. The €16,000 option is a Budget planning scenario from 1 January 2027, subject to legislation, not Revenue-confirmed 2027 rules. It retains existing ordinary-room and equal-sharing conditions as assumptions, not the new auxiliary-dwelling scope.
Options: 2026 — Revenue-confirmed €14,000 ceiling; 2027 — Budget €16,000 scenario (not Revenue-confirmed).
- Accommodation scope
- Detached and designated auxiliary dwellings are excluded in both profiles. Selecting this scope will show no estimate. 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.
Options: Room(s) in my main residence, including an attached self-contained unit; Detached / designated auxiliary dwelling — unsupported.
- Individuals entitled to this room income
- Count income recipients, not rooms or tenants. The ceiling is divided equally, even if income shares are unequal. The 2027 planning profile assumes this existing rule continues; its final taxpayer-unit treatment is not verified.
- Your annual gross receipts including board and services (€)
- Enter your own share across all qualifying rooms in the residence, including meals, laundry and other ancillary receipts, before deducting expenses. Do not enter the whole household's receipts for a shared-income estimate.
- Allowable costs if receipts taxable (€)Advanced
- Enter your own allowable costs. Expenses do not reduce the receipts tested against the ceiling. A tax deduction applies only if relief is not applied; exempt receipts still incur your cash costs.
- Estimated combined marginal tax (%)Advanced
Shown when Estimate Income Tax, USC and PRSI separately is false.
- Applicable marginal Income Tax (%)Advanced
Shown when Estimate Income Tax, USC and PRSI separately is true.
- Applicable marginal USC (%)Advanced
Shown when Estimate Income Tax, USC and PRSI separately is true.
- Applicable PRSI estimate (%)Advanced
- Example: 2026 Class S annual blended rate. Confirm your class/exemption. This estimate excludes minimum contributions.
Shown when Estimate Income Tax, USC and PRSI separately is true.
The calculation method
Use Revenue-confirmed 2026 (€14,000), or the unconfirmed Budget 2027 comparison (€16,000). Divide the ceiling equally among income recipients, then test your gross share before expenses. Exactly at the limit can qualify; any excess loses your whole exemption. Sharing in the 2027 comparison is an assumption, not Revenue-confirmed new law.
Worked example
Illustrative inputs and their result.
Example inputs
- Tax year / rules profile
- 2026 — Revenue-confirmed €14,000 ceiling
- Accommodation scope
- Room(s) in my main residence, including an attached self-contained unit
- Individuals entitled to this room income
- 1
- Your annual gross receipts including board and services (€)
- 12000
- Allowable costs if receipts taxable (€)
- 2000
- Estimate Income Tax, USC and PRSI separately
- Yes
- Applicable marginal Income Tax (%)
- 40
- Applicable marginal USC (%)
- 3
- Applicable PRSI estimate (%)
- 4.2375
- I have confirmed the stated eligibility conditions
- No
Calculated example result
- Estimated Tax
- €4,723.75
- Qualifying For Exemption
- No
- Personal Ceiling
- €14,000.00
How to interpret the result
A loan payment, gross yield or purchase budget describes only part of ownership. Read exclusions carefully: affordability, lender approval, vacancy, repairs and transaction eligibility may not be fully modelled.
Compare like-for-like properties or financing scenarios, with the same term and cost basis. Where relevant, test a higher interest rate, a vacancy period or a larger maintenance allowance.
Common mistakes to avoid
- Do not compare gross rental yield with net cash flow as if they were the same measure.
- Do not assume a favourable tax result means the property or letting qualifies for a scheme.
- Keep refundable deposits and recurring costs separate from permanent acquisition costs.
Assumptions and sources
Revenue-confirmed 2026 rules: €14,000 annual ceiling on qualifying gross receipts, including ancillary services, before expenses. Where more than one individual is entitled to the income, the limit is divided equally. Revenue's pages published 8 January 2026 and manual Part 07-01-32 updated January 2026 were checked on 7 October 2026. They still publish €14,000 and do not confirm the announced €16,000 ceiling or new taxpayer-unit treatment for 2027. Section 216A ordinary-room scope only: 2027 projects the Budget-announced €16,000 from 1 January 2027, subject to legislation. No operative 2027 amendment or commencement was verified; Finance Act 2026 (15 July 2026) contains excise provisions, not this change. The 2027 projection retains existing equal-sharing and eligibility rules; confirm final taxpayer-unit treatment before relying on it. Detached/designated auxiliary dwellings are excluded. Gross receipts include board and services before expenses, aggregated across rooms; there is no separate ceiling for each room. Confirm main-residence, relationship, residential room-use and short-stay exclusions. Allowable expenses reduce taxable profit only when relief is not applied, never restore exemption. Tax fallback uses your entered marginal rates, not a full annual tax assessment; other income, credits, bands and PRSI minima/status matter. The rate defaults are 2026 examples, not automatic 2027 rates; confirm and edit them for your circumstances. 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.
Rules checked . Baseline rules year: 2026. Reviewed scope: Revenue-confirmed 2026 rules: €14,000 annual ceiling on qualifying gross receipts, including ancillary services, before expenses. Where more than one individual is entitled to the income, the limit is divided equally. Revenue's pages published 8 January 2026 and manual Part 07-01-32 updated January 2026 were checked on 7 October 2026. They still publish €14,000 and do not confirm the announced €16,000 ceiling or new taxpayer-unit treatment for 2027. Revenue ordinary-room residence and expenses conditions only; auxiliary dwellings are excluded. The €16,000 Budget 2027 comparison is a planning projection, not a Revenue-confirmed rule or verified tax commencement.. This does not verify every selectable year, date or Budget announcement profile.
Sources and further information
- Revenue: published €14,000 ceiling and jointly assessed sharing
- Revenue: qualifying conditions, gross receipts and expenses
- Revenue manual: shared limits, gross receipts and residence scope
- Revenue: attached self-contained units and detached-unit exclusion
- Budget 2027 section 3.2: announcement (subject to legislation)
- S.I. 340/2026: planning conditions, not tax commencement
- Section 216A ceiling amendment: Finance Act 2016, section 13 (2017 onwards)
- Finance Act 2016, section 59: commencement
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.