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Budget Proposal Seeks €20,000 Rent-a-Room Tax-Free Limit for Multi-Room Lettings

Wednesday 23 September 2026

A new budget proposal aims to raise the Rent-a-Room tax-free threshold to €20,000 for homeowners letting multiple rooms, targeting empty nesters and student housing.

A budget plan proposes raising the Rent-a-Room tax-free limit to €20,000 for homeowners letting multiple rooms.

The proposed change aims to adjust the threshold for tax-free earnings under the existing room-rental scheme.

According to James Lawless, the planned increase is intended to create a strong incentive for 'empty nesters' to open up spare bedrooms. Lawless also indicated that the measure would help to improve the availability of student accommodation.

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