LAST UPDATE | 4 Mar 2025

THE GOVERNMENT HAS announced a two-year extension to a tax scheme allowing social protection recipients to rent out a room in their home to private tenants.

The rent-a-room scheme lets the homeowner or main occupier earn up to €14,000 per year tax-free if they rent out a room in your home to private tenants.

Minister for Social Protection Dara Calleary has today announced the extension of the measure to 2027.

The measure was first introduced in May 2022 and was extended by a further two years in March 2023.

Almost 750 people have availed of the measure to date according to the department.

Commenting on the measure, Calleary said he it will help provide beds amid a “very tight” accommodation market

“I am delighted to announce the extension of the social protection regulations for people renting a room in their own home,” the Fianna Fáil minister said.

“This measure extends a relief, similar to that available to income tax payers, to people in receipt of social welfare payments to make rooms available in their homes.

“The measure provides a small but valuable contribution in what continues to be a very tight accommodation market. It reflects our desire to ensure rooms that are available in homes across the country are freed up for potential tenants.”