Understanding Preliminary Tax for Irish Landlords and Self-Employed Individuals
Introduction
If you’re a landlord or self-employed individual in Ireland, understanding Preliminary Tax is crucial.
Failing to pay the right amount on time can lead to interest charges and penalties—something no business or property owner wants.
Here’s a simple guide to what preliminary tax is, how it’s calculated, and when it’s due, based directly on Revenue.ie guidelines.
What is Preliminary Tax?
Preliminary Tax is your estimate of the income tax, PRSI, and USC you expect to owe for the current tax year.
You must pay it before the end of the tax year, along with any outstanding balance for the previous year.
It applies if you are:
- Self-employed
- A landlord
- A company director
- In receipt of non-PAYE income (e.g., dividends, rental income)
How is Preliminary Tax Calculated?
You must pay at least one of the following to avoid penalties:
| Option | Requirement |
| Option 1 | 90% of your final liability for the current year |
| Option 2 | 100% of your final liability for the previous year |
| Option 3 | 105% of your final liability from the year before last (only by direct debit) |
Pro Tip: Most self-employed people pay 100% of last year’s final liability because it’s easier to calculate.
Deadlines to Remember
- Preliminary Tax Due Date:
31 October of the tax year (or mid-November if paying online via ROS). - Final Balance Due Date:
Also 31 October of the following year when you file your tax return (Form 11).
Late payment attracts daily interest at a rate of 0.0219%.
Examples
Example 1:
You owed €8,000 in income tax for 2024.
To avoid penalties for 2025, you must either:
- Pay 90% of 2025’s expected liability, or
- Pay €8,000 based on 2024’s final figure.
Example 2:
If you earned new rental income in 2025, you must include it when estimating your preliminary tax for that year.
Common Mistakes to Avoid
❌ Paying based on turnover instead of taxable profit.
❌ Ignoring preliminary tax completely.
❌ Forgetting rental income, dividends, or other taxable income sources.
Related Read: Understanding Preliminary Tax: What Irish Business Owners Need to Know
Conclusion
Paying preliminary tax on time and accurately is vital to staying compliant with Revenue. With careful planning—and perhaps a little expert help—you can avoid penalties and manage your cash flow more effectively.
Need help calculating or filing your preliminary tax?
At Intax.ie, we simplify tax compliance for Irish landlords and self-employed individuals.
Contact Intax.ie today for stress-free preliminary tax planning.