Irish tax on income streams
Each rule shows the tax year it applies to, its official source and when we last checked it (all 2026-09-25). Educational information about Irish tax rules, not tax, legal or financial advice. Your position depends on your circumstances — check with Revenue or a qualified adviser.
Declaring side income as a PAYE worker
Side income is taxable from the first euro. If your net non-PAYE income is under €5,000 (and gross under €30,000) you can declare it on Form 12 through myAccount. At €5,000 net or more you are a “chargeable person” and must register for self-assessment and file Form 11 by 31 October.
Tax year 2026 · Citizens Information — tax on income that is not from your employer · reviewed 2026-09-25
VAT registration thresholds
You must register for VAT once turnover exceeds, or is likely to exceed, €42,500 a year for services or €85,000 for goods.
Tax year 2026 · Revenue — VAT registration · reviewed 2026-09-25
Rent-a-Room Relief
Up to €14,000 a year from renting rooms in the home you live in is exempt from income tax, USC and PRSI, provided it is used as residential accommodation and the tenant is not a short-term guest (e.g. Airbnb) or a relative/civil partner of the owner. You still declare it on your return. Go over €14,000 and the whole amount becomes taxable.
Tax year 2026 · Revenue — Rent-a-Room Relief · reviewed 2026-09-25
Short-term lets (e.g. Airbnb)
Income from short-term guests does not qualify for Rent-a-Room Relief and is taxed as income (trading or Case IV). Many urban areas are Rent Pressure Zones where short-term letting of a non-principal home needs planning permission.
Tax year 2026 · Revenue — Irish rental income · reviewed 2026-09-25
Capital Gains Tax
Gains on selling assets (shares, property other than your home, crypto) are taxed at 33% after a €1,270 annual personal exemption.
Tax year 2026 · Revenue — Capital Gains Tax · reviewed 2026-09-25
Deposit interest (DIRT)
Interest on Irish deposit accounts has DIRT of 33% deducted at source. Interest from non-Irish accounts must be declared yourself.
Tax year 2026 · Revenue — DIRT · reviewed 2026-09-25
Dividends
Irish dividends have 25% Dividend Withholding Tax deducted, which is a credit against your liability. Dividends are taxed as income at your marginal rate, plus USC and PRSI.
Tax year 2026 · Revenue — dividend income · reviewed 2026-09-25
Exit tax on EU funds and ETFs
Gains on most EU-domiciled funds and ETFs are taxed under the exit-tax regime rather than CGT (38% from 1 January 2026, down from 41%), including a “deemed disposal” every eight years; losses cannot be offset. Check the rate for your holding with Revenue before investing.
Tax year 2026 · Revenue — funds and exit tax · reviewed 2026-09-25
Royalties and digital sales
Royalties (books, music, stock media) and digital product sales are taxable income. The artists’ exemption can cover some creative royalties up to €50,000 a year if Revenue has approved the work.
Tax year 2026 · Revenue — artists’ exemption · reviewed 2026-09-25
Business expenses
Costs incurred “wholly and exclusively” for the side business (tools, software, platform fees, a share of home costs) are deductible from the income before tax. Keep receipts for six years.
Tax year 2026 · Revenue — allowable expenses · reviewed 2026-09-25