Taxes Consolidation Act 1997 section 216A

Section 216A provides an exemption from income tax, PRSI and USC for gross rental income of up to €14,000 per annum received by an individual from letting a room or rooms in his or her sole or main residence, subject to certain conditions and exclusions.

• Gross income up to €14,000 from letting a room in your home is exempt from income tax, PRSI and USC, with no deduction allowed for expenses in determining whether the limit is exceeded.
• The relief does not apply where the rent is paid by a child of the homeowner or the homeowner's civil partner, where the homeowner is an employee or office holder of the tenant, or where the letting is for fewer than 28 consecutive days (subject to exceptions).
• An individual may elect to opt out of the relief for any year of assessment by notifying Revenue in writing on or before the return filing date for that year.
• Claiming rent-a-room relief does not affect entitlement to mortgage interest tax credit or the principal private residence exemption from capital gains tax.