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How much tax..

  • 30-01-2019 9:09pm
    #1
    me4many
    Registered Users, Registered Users 2 Posts: 284 ✭✭


    I am a paye employee ( single )earning 39.5k p/a.
    I have a house which i am going to rent out (necessity)
    How much income can I have from rental and how will it be taxed.. Are the two incomes combined or treated separately.
    Thanks


Comments

  • #2
    Calahonda52
    Registered Users, Registered Users 2 Posts: 12,888 ✭✭✭✭Calahonda52


    are you going to be living in the house or are you going to be a landlord?

    “I can’t pay my staff or mortgage with instagram likes”.



  • #3
    Geuze
    Registered Users, Registered Users 2 Posts: 14,039 ✭✭✭✭Geuze


    me4many wrote: »
    I am a paye employee ( single )earning 39.5k p/a.
    I have a house which i am going to rent out (necessity)
    How much income can I have from rental and how will it be taxed.. Are the two incomes combined or treated separately.
    Thanks

    The net rental profits are combined with your other incomes, and all are taxed.

    In your case, the net rental profits will be taxed at 40%, as your marginal tax rate is 40%, based on the info you have provided.


  • #4
    namenotavailablE
    Registered Users, Registered Users 2 Posts: 59,703 ✭✭✭✭namenotavailablE


    Assuming that this isn't a 'rent a room' scenario [LINK] where the income can be exempt if various conditions are met, there will be 40% PAYE (income tax) plus 4% PRSI and 4.5% USC on the net rental profits.

    Free Excel net pay calculator- https://taxcalc.eu/monthlyss/Employee%20PAYE%20calculator.xlsm



  • #5
    me4many
    Registered Users, Registered Users 2 Posts: 284 ✭✭me4many


    Calahonda52 wrote: »
    are you going to be living in the house or are you going to be a landlord?

    Thanks for reply.
    It will be rented out and I won't be living there...no rent a room involved..
    Tks.


  • #6
    me4many
    Registered Users, Registered Users 2 Posts: 284 ✭✭me4many


    Thanks for all replies above.


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  • #7
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    You might be better off renting a couple of rooms...otherwise you'll pay roughly 50% of rental profits in taxes...

    You could earn up to €14k tax free. This equates roughly to earning €28k from renting the whole house...

    As in most cases, my recommendation would be to pay a visit to an accountant and not rely on free advice here! ;-)


  • #8
    me4many
    Registered Users, Registered Users 2 Posts: 284 ✭✭me4many


    exaisle wrote: »
    You might be better off renting a couple of rooms...otherwise you'll pay roughly 50% of rental profits in taxes...

    You could earn up to €14k tax free. This equates roughly to earning €28k from renting the whole house...

    As in most cases, my recommendation would be to pay a visit to an accountant and not rely on free advice here! ;-)

    Thanks...
    I will be getting advice from accountant.. it's just good to have some info in advance..


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