At what rate is rental income taxed?

C

crobo

Guest
Hi,
I have been throught the revenues leaflet on renting [broken link removed] and cannot see what the basic rate of tax is for rental income. It does say that "If a landlord resides outside the country and rent is paid directly to him/her or
to his/her bank account either in the State or abroad, tax must be deducted by the tenant at the standard rate of tax (currently 20%) from the gross rents payable." Does that mean that the rate is 20% for everybody or is it say 41% for anyone earning in the top tax bracket?

Crobo
 
It depends on what your total income once you add your rental and paye income comes to together, if this goes over 35,400 then you will pay the higher rate of tax on whatever it is over this by. ie if your total imcome was 40k, then you would pay tax higher rate on 4600
 
Thanks for clearing that up. Does that mean that if I am out of the country and have no income in ireland other than the rental income it will be taxted at 20%?
 
JJ1982, it is not the other way around?
The Irish rental income taxed at a flat rate of 20% in Ireland, but also must be declared in the country where he is resident, and may be further taxed based on local tax rates & DTA (dual tax agreement - that may allow for tax paid in Ireland to be offset) & other incomes.
 
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