What Is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value. It is charged on the gain, not the total sale price.
Updated for 2026 Revenue rates.
CGT Rates for 2026
- Standard rate — 33% on most assets
- Entrepreneur relief — 10% on qualifying gains up to a lifetime limit of €1,000,000
- Consanguinity relief — reduced rate of 33% (standard rate applies but certain reliefs may reduce effective rate on asset transfers between close relatives)
Annual Exemption
For 2026, the first €1,270 of chargeable gains in a tax year is exempt from CGT. Married couples and civil partners each get their own annual exemption.
Principal Private Residence (PPR) Relief
If you sell your main family home, the gain is exempt from CGT under PPR relief, provided:
- The property has been your only or main residence throughout your period of ownership
- The property and garden grounds do not exceed 1 acre (0.4 hectares) — excess land may be taxable
- If you used part of the home exclusively for business, that portion may not qualify for relief
If you were absent from the property due to employment (including overseas work), you may still qualify for full relief for up to 4 years of absence.
Entrepreneur Relief
Entrepreneur relief reduces the CGT rate to 10% on qualifying gains up to a lifetime limit of €1,000,000. It applies to:
- The disposal of all or part of a qualifying business
- Disposal of assets used by a qualifying business
- Disposal of shares in certain qualifying companies
Conditions include that you must have owned the business or shares for at least 3 years and been a working director or employee.
Other CGT Reliefs
- Retirement relief — available to individuals aged 55+ disposing of business/farm assets (full relief up to certain value limits)
- Farm restructuring relief — relief on exchange of farmland for consolidation purposes
- Transfer between spouses/civil partners — no CGT on transfers between spouses or civil partners, including on separation/divorce
- Investment in innovative companies — CGT deferral for reinvestment in certain innovative SMEs
Calculating Your Gain
Your chargeable gain is: Sale proceeds − (Purchase cost + Enhancement expenditure + Incidental costs of acquisition and disposal). Indexation relief (adjusting costs for inflation) was abolished for disposals after 2003.
Filing and Payment
CGT is a self-assessment tax. You must:
- File a CGT return through ROS or myAccount
- Pay CGT within the following deadlines:
- Gains from January to November — due by 15 December of that year
- Gains from December — due by 31 January of the following year