How to pay tax on rental income
Rental income is automatically taken into account in your tax rate or prepayment amount based on your rental income in previous years. As a rule, income of less than €7,000 has been taken into account in your tax card’s tax rate. Your tax rate may be higher because of this, but no separate payment is generated for income, such as rental income.
If you have paid taxes on your rental income previously, and there have been no changes to the income or the deductions you make from that income, you do not need to do anything.
If there are changes to your rental income, you must request a new tax card or changes to prepayments. If you are receiving rental income for the first time, report your rental income for your tax card or request prepayments.This way, your taxes are kept up to date and you will not have to pay back taxes later.
Alternative 1: Request a new tax card
You can calculate a tax card for your wages or pension such that it also covers the tax on your rental income.
- Order a new tax card in MyTax
See the guidance for using MyTax: How to order a tax card in MyTax
Alternative 2: Pay taxes as prepayments
You can ask the Tax Administration to calculate prepayment instalments for you. You will receive payment instructions with your prepayment decision. Your prepayments will be split into one or more instalments during the tax year as shown in the decision.
You can also use the service to request a tax card for your wages. See the guidance for using MyTax: How to request prepaymentMore information about prepayments
Report changes in your rental income promptly
If there are changes to your rental income, make the necessary corrections to your tax card or prepayments as soon as possible.
Request changes to tax card, changes to prepayments or cancellation of prepayments
- if your rental income increases or decreases
- if you no longer rent out your property.
If you stop making prepayments without notifying the Tax Administration, you will be sent a reminder. After this, any outstanding tax debt will be collected through enforcement.
Check rental income in your tax return
When you receive the pre-completed tax return, check the information in it. If no information on your rental income is included or if corrections must be made, log in to MyTax and make the corrections. You must do this by the deadline date indicated on your return.