If you rent out a room to a private tenant, the rental income you earn may be exempt from income tax. This is called the rent-a-room relief.
You can claim rent-a-room relief as long as the rental income you earn does not exceed a certain limit in a tax year. Currently, the total (gross) rent that you get, including sums the tenant pays for food, utilities, laundry or similar goods and services, cannot exceed €14,000 in the tax year (1 January to 31 December).
If you qualify for rent-a-room relief, the income you get from renting out the room is not liable to PRSI, the Universal Social Charge or income tax.
You should note that the relief applies only to residential tenancies, not to short-term guest arrangements. Renting a room to a student for the academic year or for a one-month course is covered, but you don’t qualify if you are providing accommodation to occasional visitors for short periods – for example, through an online accommodation booking site.