Resources
Tax Guide 2025
The Law Society Taxation Committee publishes an annual Tax Guide in the Gazette and on lawsociety.ie.
Practitioners can download a printable 2025 Tax Guide or view individual contents using the links below.
Capital Gains Tax
The annual exemption is €1,270 per individual, non-transferable between spouses or civil partners.
For disposals made on or after 7 December 2007, land transfer of site for house plus no more than 1 acre from parent to a child (or in specified circumstances a foster child), valued not more than €500,000, for purposes of building principal private residence, is exempt.
Tax charged at 33% on gains arising on disposals on/after 6 December 2012*. Certain profits from dealing in or developing residential property will be charged at the taxpayer’s marginal rate of tax**.
* Note: Other rates apply to certain foreign life policies and certain offshore funds.
** Note: Development rules apply regarding indexation.
*** Note: In limited circumstances relief under section 597AA TCA 1997 can reduce the rate to 10% up to a lifetime limit of €1 million in chargeable gains.
Retirement relief on disposals of qualifying assets by individuals aged 66 or more reduced / restricted for disposals on or after 1 January 2014.
For disposals from 1 January 2025, CGT retirement relief will be subject to the following limits: Disposal to a child: Age 55-69 €10m, Age 70 and over €3m. Any other disposal: Age 55-69 €750,000, Age 70 and over €500,000.
Indexation relief only applies for the period of ownership up to 31 December 2002 for disposals on or after 1 January 2003.
In the case of disposals made between 1 January – 30 November, the tax must be paid by 15 December the same year. For disposals 1 December – 31 December the tax must be paid by 31 January in the following year.
Withholding Tax
Purchasers of specified assets exceeding €500,000 (or €1,000,000 if the asset disposed of is a “house” within the meaning of section 372AK TCA 1997) in value must withhold tax @15% if CGT clearance certificate is not furnished prior to closing. Tax withheld becomes payable 30 days after net consideration is paid to seller and will be allowed as credit against vendor’s CGT liability.
Capital Acquisitions Tax
Tax thresholds
Group A - Child/foster child/minor child of a deceased child
- From 14 October 2015: €280,000
- From 12 October 2016: €310,000
- From 10 October 2018: €320,000
- From 9 October 2019: €335,000
- From 2 October 2024: €400,000
Group B - Lineal ancestor or lineal descendant, brother, sister, child of brother or sister*
- From 14 October 2015: €30,150
- From 12 October 2016: €32,500
- From 2 October 2024: €40,000
Group C - Others
- From 14 October 2015: €15,075
- From 12 October 2016: €16,250
- From 2 October 2024: €20,000
*ln the case of an absolute inheritance, a parent falls into Group A
*ln the case of an absolute inheritance, a parent falls into Group A
Base date for aggregation of gifts/inheritances taken after 5 December 2001: 5 December 1991. From 1 December 1999, aggregation is limited to aggregation within each group. From 26 March 1984 to 30 November 1999, aggregation arises between all group thresholds.
Rate of tax
Threshold amount: Nil
Balance above threshold amount: 33% on gifts/inheritances taken on or after 6 December 2012. 30% on gifts/inheritances taken on or after 7 December 2011 and prior to 5 December 2012
Small Gifts Exemption = €3,000 per individual
Income tax
Exemption Limits 2025
- Single/Widowed/Surviving Civil Partner 65 and over: €18,000
- Married/Civil Partnership 65 and over: €36,000
- Additional for Dependent Children 1st and 2nd child (each): €575. Each subsequent child: €830
Personal Tax Credits
- Single Person: €2,000
- Married Person/Civil Partnership: €4,000
- Employee Tax Credit (formerly PAYE Tax Credit): €2,000
- Earned Income tax credit (max): €2,000
- Widowed Person/Surviving Civil Partner qualifying for Single Person Child Carer Tax Credit: €1,900
- Widowed Person/Surviving Civil Partner without qualifying dependent children: €2,540
- Widowed Person/Surviving Civil Partner in year of bereavement: €4,000
- Single Person Child Carer Tax Credit, Widowed/Surviving Civil Partner, Deserted, Separated or Unmarried (with qualifying dependent children): €1,900
- Home Carer (max.): €1,950
- Age Tax Credit if Single / Widowed / Surviving Civil Partner: €245
- Age Tax Credit if Married / Civil Partnership: €490
- Incapacitated Child Credit: €3,800
- Dependent Relative: €305
- Incapacitated Person – Allowance For Employing a Carer: €75,000*max
- Fishermen’s credit: €1,270
- Sea-going naval personnel credit: €1,500
- Rent tax credit** for jointly assessed married person or civil partner €2,000 and in all other cases €1,000
- Small benefit exemption (max, over an aggregate of no more than five gifts): €1,500
*Relief is allowable at the individual’s highest rate of tax, i.e. 20% or 40%. Where this relief is claimed, the incapacitated child tax credit or the dependent relative tax credit, as appropriate, cannot be claimed.
**Applies to parents paying for children’s ‘rent a room’/’digs’ type accommodation.
Tax relief, which is given at source, on health insurance premium is limited to: €1,000 per adult policy and: €500 per child policy. With respect to policies entered into or renewed on or after 1 May 2015, the: €1,000 ceiling will apply to all adults aged 21 and older, regardless of the fact that they may be availing of a “child-rate” premium offered by the insurer.
An Income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heating and internet services for days spent working from home (apportioned based on the number of days worked from home over the year) can be claimed by remote workers. Employers may also pay remote workers up to: €3.20 per day to cover the costs of working from home without deducting income tax, universal social charge (USC) or pay-related social insurance (PRSI).
Exemptions and reliefs
Landlords temporary tax relief
A relief for qualifying small landlords whereby rental income of €3,000 (2024),
€4,000 (2025), and €5,000 (2026/27) is disregarded at the standard 20% rate,
subject to clawback provisions.
Mortgage interest relief
Temporary tax credit for LPT compliant taxpayers with an outstanding mortgage
balance on their principal private residence (PPR) of between €80,000 and
€500,000 as of 31 December 2022. Relief available at the standard rate of income
tax on the increase in interest paid in 2024 over the interest paid in 2022, capped
at €6,250 (tax credit of €1,250) per residence.
Child minder’s exemption
Full exemption on income up to €15,000: if income exceeds €15,000, entire amount is taxable.
Rent a room scheme
Gross annual rental income up to €14,000 is exempt: if income exceeds €14,000, entire amount is taxable.
Personal Income Tax Rates / Tax Bands 2025
- Single/Widowed/Surviving Civil Partner without dependant children: €44,000 @ 20%, Balance @ 40%
- Single / Widowed / Surviving Civil Partner Qualifying for One-Parent family tax credit: €48,000 @ 20%, Balance @ 40%
- Married Couple or Civil Partnership (one spouse/civil partner with income): €53,000@ 20%, Balance @ 40%
- Married Couple/Civil Partnership (both spouses/civil partners with income): €53,000@ 20%* Balance @ 40%
*with an increase of €35,000 max
Social Insurance (PRSI)
Employed rates
Employee (class A1)
- Annual earnings (and unearned income from 2025) not exceeding €27,404: 4.1%
- Annual earnings (and unearned income from 2025) exceeding €27,404 – entire amount: 4.1%
Employer
- Annual earnings (and unearned income from 2025) not exceeding €27,404: 8.9%
- Annual earnings (and unearned income from 2025) exceeding €27,404 – entire amount: 11.15%
Employees earning €352 or less per week are exempt from PRSI. Employer rates include the National Training Fund Levy, (collected in conjunction with Employer PRSI).
From 1 October 2025 the rates will increase by 0.1%.
Self-Employed person
- PRSI on all income 4.1%
The minimum contribution for a self employed person is €650.
Universal Social Charge
Universal Social Charge is payable on ‘aggregate income’ which is the aggregate of ‘relevant emoluments’ and ‘relevant income’.
This is generally all gross income before certain reliefs but excludes social welfare payments and income that has suffered Deposit Interest Retention Tax (DIRT).
Where ‘aggregate income’ does not exceed €13,000 per annum, the income is exempt from the USC. Where the ‘aggregate income’ exceeds the exemption limit, the following rates apply:
- Up to €12,012: 0.5%
- €12,012.01 to €27,382: 2%
- €27,382.01 to €70,044: 3%
- PAYE income in excess of €70,044: 8%
- Self-employed €70,045 to €100,000: 8%
- Self-employed income in excess of €100,000: 11%
- Individuals aged 70 Years or over or Individuals who hold full medical cards and who have aggregate income of less than €60,000: maximum rate of 2% (extended to end of 2025).
Stamp Duty
Consanguinity relief for stamp duty at a 1% rate applies to inter-family transfers of farms before 31 December 2028.
Full exemption for Young Trained Farmer Relief in the acquisition of farmland/agricultural buildings.
Residential Property Transactions
(for instruments executed on/after 2 October 2024)
Rate of Duty
- Consideration - First €1,000,000: 1%
- Next €500,000 2%
- Excess over €1,500,000 6%*
These rates are progressive, not cumulative.
*Note: The new 6% rate is disapplied where three or more apartments in the same block of apartments are being acquired and 2% rate applies instead.
Non-Residential Property (excluding shares and policies of insurance)
7.5% on full amount of consideration from 9 October 2019. 2% applies where land is subsequently used for residential development (stamp duty refund scheme), and certain conditions are fulfilled.
LPT and Vacant Homes Local Property Tax (LPT)
(payable from 1 July 2013)
The property valuation on 1 November 2021 will determine the amount of LPT due for 2022 to 2025. LPT is charged according to the relevant valuation band that applies to a property valued up to €1.75m. For properties valued more than this, different rates apply. Different rules applied for 2013 – 2021 inclusive.
Vacant Homes Tax
Applies to residential properties that are occupied for less than 30 days in a 12-month period. For the 12 months starting on 1 November 2024, the tax will be charged at a rate seven times the basic rate of Local Property Tax for the property. It will not apply to properties unsuitable for use as a dwelling.
VAT
- Newspapers and news periodicals (both printed and digital editions), e-books, audio books and certain health products: 0%
- Farmers’ flat rate: 5.1%
- Livestock rate, including horses for use in agricultural production or preparation of foodstuffs – otherwise does not include horses and greyhounds: 4.8%
- Gas, electricity (up to 30 April 2025) and the supply and installation of low emissions heat pump heating systems, sports facilities, horses, other than those chargeable at the 4.8% rate, and greyhounds: 9%
- Hotel accommodation, hairdressing and stud nomination fees: 13.5%
- Standard rate: 23%
Professional Services Withholding Tax, Corporation Tax and DIRT
Professional Services Withholding Tax
- Standard rate: 20%
Corporation Tax
- Non-trading rate: 25%
- Trading rate: 12.5% (subject to certain exceptions where rate of 25% applies)
- Profits on trading in residential development land (other than ‘qualifying land’): 25%
- Chargeable Gains: 33%
- Certain foreign dividends: 12.5%
Deposit Interest Retention Tax (DIRT)
- From 1 January 2020: 33% for deposit accounts (including Credit Union savings
accounts) and 41% on exit in relation to certain life assurance policies and
investments funds
Help To Buy Scheme
The maximum rebate of previous 4 years’ income tax and DIRT for First Time Buyers of newly-built houses/apartments is the lower of 10% of purchase price (or the completion value in the case of a self-build) up to value of €500,000, and provided the house is valued at less than €500,000, or €30,000 or the amount of income tax/DIRT paid in the four years.
To be eligible for the scheme, the first-time buyer must have signed the contract on or after 19 July 2016 and on or before 31 December 2029.
Alternatively, in the case of a self-build, the first tranche of the mortgage loan must be drawn down between those dates. From 11 October 2023, the scheme includes properties purchased through the Local Authority Affordable Purchase (LAAP) scheme.
Domicile Levy
Irish domiciled individuals whose worldwide income exceeds €1m, whose Irish-located property is greater than €5m and whose liability to Irish income tax is less than €200,000 will be subject to a levy of €200,000.
Irish income tax paid will be credited against the levy.
Previous tax guides
Download tax guides for previous years below.
