Do I pay PRSI or USC on rental income?

Yes, if you are resident in Ireland and receive rental income, you are generally liable for PRSI and USC.

• PRSI: If you are self-employed or have rental income, you may have to pay PRSI at 4% of your rental income if your total income exceeds €5,000.
• USC: USC applies to rental income if your total income exceeds €13,000. The rates are 0.5%, 2%, 3%, and 8%, depending on your income level.

Non-residents with rental income are not liable to PRSI but are subject to Income Tax and USC.

How does this work if I am a PAYE earner with rental income?

• PRSI: PAYE workers must pay PRSI on rental income if total income exceeds €5,000. PRSI for rental income is generally calculated under Class S, which applies to self-employed income.
• USC: USC applies to all income sources, including rental income, based on progressive rates. It’s calculated separately from PAYE and PRSI.
• Self-Assessment: If rental income exceeds €5,000 (after expenses), you must file a Form 11 self-assessment tax return. If below €5,000, you may still need to file if already registered for self-assessment.