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Property · Calculator companion · By K Imports

Rental income tax estimate: practical guide

This guide explains how to use the Count.ie rental income tax estimate. Separate taxable rental profit from cash flow and estimate marginal taxes. Follow the inputs, method and worked example below, then compare your own scenario.

Guide written .

Open the Rental income tax estimate calculator

What 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

The calculation method

Taxable profit excludes capital allowances; cash flow deducts cash expenses and interest, but does not deduct capital allowances twice.

Worked example

Illustrative inputs and their result.

Example inputs

Annual gross rent (€)
24000
Allowable running expenses excluding LPT (€)
3000
Qualifying mortgage interest (€)
5000
Allowable capital allowances (€)
1000
Marginal Income Tax (%)
40
Marginal USC (%)
3
Applicable PRSI (%)
4.2375

Calculated example result

Estimated Rental Tax
€7,085.63
Cash After Costs And Tax
€8,914.38

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

Rates/conditions reviewed against the linked official sources on 5 October 2026. Confirm the stated scope before relying on the result.

Rules checked . This date comes from the tool’s review notes and applies only to its documented scope, not to every selectable scenario.

Sources and further information

If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.

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