Rent Tax Credit
The maximum Rent Tax Credit is proposed to increase from €1,000 to €1,150 for single persons, and from €2,000 to €2,300 for jointly assessed couples, for the 2027 and 2028 tax years.
Rent-A-Room
The Bill proposes to extend Rent-a-Room Relief to qualifying rental income arising from an auxiliary dwelling situated within the grounds of an individual's sole or main residence for the period from 27 July 2026 to 31 December 2030.
The annual income threshold for the relief is also proposed to increase from €14,000 to €16,000 from 1 January 2027.
In addition, the Bill provides that the receipt of qualifying Rent-a-Room income will not impact the availability of Principal Private Residence Relief under section 604 TCA 1997 or Mortgage Interest Tax Relief under section 473C TCA 1997.
In addition, the Bill provides that CGT Principal Private Residence relief and Mortgage Interest Relief, will not extend to 'auxilliary dwellings' qualifying for the rent-a-room relief. This may create some complexity on a future sale.
Derelict Property Tax
Ending dereliction is a key goal within Delivering Homes, Building Communities. As part of the actions under this plan, a new Derelict Property Tax will be introduced to encourage urban regeneration and will be legislated for in the Bill. This tax will be administered by the Revenue Commissioners and will be based on registers compiled by local authorities.
From January 2027, local authorities will be responsible for identifying derelict properties in towns with a population of 4,000 and above, who will transmit the details of these properties to Revenue. Property owners will be required to pay the tax of 7% of the value of the property by June 2028, unless they take action to remediate the property.
Help to Buy
The maximum relief available under the Help to Buy scheme has increased from €30,000 to €35,000 for qualifying contracts entered into, or first mortgage drawdowns for self-builds made, between 7 October 2026 and 31 December 2029. The relief continues to be capped at the lesser of:
€35,000, or
10% of the purchase price of the new home or of the completion value of the property in the case of self builds, or
The amount of Income Tax and DIRT in the previous four years.
Residential Zoned Land Tax
The Bill provides a further opportunity for landowners whose land appears on the revised map for 2027, to be published on 31 January 2027, to request the relevant local authority to change the zoning of the land, and where certain conditions are met, to claim an exemption from the 2027 Residential Zoned Land Tax liability in respect of their land on foot of making such a request.