Inheritance tax: an Irish guide (2026)

The tax on a person’s estate after they’ve died is called Capital Acquisitions Tax (CAT), which is a type of inheritance tax. In this article, you’ll discover what Irish inheritance tax is, who has to pay it, how it’s calculated, and if there are ways you may be able to reduce the amount you’ll pay in 2026.

The information provided here is for informational and educational purposes only and does not constitute tax advice. You should consult with a qualified tax professional or adviser regarding your individual tax situation. Tax laws and regulations are complex and subject to change, and the information provided may not be applicable to your specific circumstances. We are not liable for any tax decisions or actions you take based on this information.

Capital Acquisitions Tax is the tax payable on the estate of someone who has passed away. Estates are made up of various assets, for example, money, property, pensions and possessions. How much tax you’ll need to pay will depend on the entire value of the estate.

You can receive gifts and inheritances up to a set value over your lifetime before having to pay Capital Acquisitions Tax. Once due, it is currently charged at the rate of 33%, on gifts or inheritances made on or after 6 December 2012.

It falls to the recipient or beneficiary to pay Capital Acquisitions Tax (CAT), and it applies to all property in Ireland.

CAT may also apply to property situated outside Ireland where either the disponer or the beneficiary is resident or ordinarily resident in Ireland at the relevant date, in line with Revenue rules.

The deadline to pay and file CAT depends on the valuation date of the gift or inheritance:

• where the valuation date is between 1 January and 31 August, the pay and file deadline is 31 October in that year;
• where the valuation date is between 1 September and 31 December, the pay and file deadline is 31 October in the following year.”

You must complete form IT38 for a gift or inheritance tax return, and you can pay CAT online. Note that you will be charged a percentage of the tax you owe if you pay late, as is the case with late payments on other types of taxes.

The standard rate for inheritance tax in Ireland in 2026 is 33%.

However, there are exemptions to paying inheritance tax (more on those below). These exemptions depend on the relationship between the recipient of the inheritance and the person you are inheriting from.

A disponer is the person who gives you the gift or inheritance, and the beneficiary is the person who receives the gift or inheritance. A gift become inheritance if the disponer dies within two years of giving the gift.

Firstly, gifts and inheritances given or received by a civil partner or spouse are exempt from CAT. If you are a widow, widower or a surviving civil partner, you may be eligible for additional relief. You also do not need to pay CAT on a gift with a value of €3,000 or less from any one person in any one calendar year.

Tax-free thresholds depend on your relationship with the disponer (the person giving the gift or inheritance).

There are also some circumstances in which Capital Acquisitions Tax (CAT) may not apply, provided specific conditions are met:

1. Dwelling house relief
   You may qualify for relief from CAT on an inherited property if all Revenue conditions are satisfied, including (in general terms):
   1. you occupied the property as your main residence for a required period before the disponer’s death;
   2. you do not have a beneficial interest in another dwelling at the time of the inheritance (subject to Revenue rules); and
   3. you continue to occupy the property as your main residence for a required period after the inheritance, unless certain exceptions apply (for example, where the beneficiary is aged 65 or over). This relief is subject to detailed conditions and potential clawback.
2. Inheritance from a spouse or civil partner
   Inheritances from a spouse or civil partner are fully exempt from CAT.
3. Inheritance by a parent from a child
   A parent may be exempt from CAT on an inheritance received from a child where that child had received a taxable (non-exempt) gift or inheritance from the parent within the previous five years.

With careful planning, the tax bill beneficiaries pay on inheritance tax can be reduced. If you have leftover inheritance, you may want to consider saving it in a term deposit, which offers a fixed interest rate for the agreed term.

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