Do I pay tax on a house I inherit?

A house counts like any other benefit, at its market value on the valuation date, less allowable debts and costs. An exemption may apply if you lived there.

Finding the value to enter

Revenue's taxable value is the market value, less allowable liabilities, costs or expenses, and less any consideration you paid. Only amounts actually paid can be deducted. In Revenue's example, David inherits a house worth €600,000 with a €120,000 mortgage, and must pay his sister €60,000. His taxable value is €420,000.

Revenue has more on taxable value. A professional valuation may be worthwhile for a property.

The dwelling house exemption

The calculator does not apply this exemption. For an inheritance, Revenue's conditions include that:

• the house was the only or main home of the person who died
• you lived in it as your only or main home for the three years before the inheritance
• you do not own or have an interest in any other house on that date
• it remains your only or main home for six years afterwards

There are exceptions, and the exemption can be withdrawn if conditions later fail. A gift of a house qualifies only for a dependent relative. Read Revenue's full conditions before relying on this.

A right to live in a house

A limited interest or a right of residence has its own valuation rules, so the calculator will not value it for you. See Revenue's page on limited interests.