For many people in Ireland, the question “Is my extra income taxable?” feels deceptively simple. The word extra suggests something secondary, occasional or minor something that sits outside the core of a person’s financial life. But from Revenue’s perspective, there is no such thing as “extra” income. There is only taxable income, and the obligation to understand it rests squarely with the taxpayer.
In recent years, Revenue has made it increasingly clear that income earned outside PAYE is one of the most common areas of misunderstanding and under-declaration. Not because people are deliberately non-compliant, but because extra income often does not feel like income in the traditional sense. It may be irregular, informal, foreign, digital, or earned alongside a main job. It may already have had some tax deducted. It may feel too small to matter.
In 2025–2026, these assumptions carry real risk.
Revenue’s systems no longer rely solely on self-reporting. Information flows from banks, platforms, employers, overseas tax authorities and digital intermediaries. Extra income is no longer invisible just because it is not taxed through payroll. And when Revenue asks whether your extra income is taxable, the answer is almost always yes the real question is how it should be taxed and declared.
Revenue uses the term extra income to describe any income that is earned in addition to your main source of earnings, particularly where that income is not fully taxed at source through PAYE or another final withholding mechanism. It does not matter whether the income is regular or irregular, large or small, intentional or incidental. What matters is that it arises.
Extra income can come from assets, activities, side work, ownership or opportunity. It may be something you actively pursue, such as consultancy or freelance work. It may arise passively, such as interest on savings or rent from property. It may be something you did not initially set out to monetise, such as selling goods online or renting out a room occasionally.
Revenue’s position is straightforward: if money or value is received, it must be assessed for taxability.
The importance of understanding extra income has grown significantly in recent years, driven by changes in how people work, invest and earn.
Employment is no longer the sole or even primary income source for many individuals. Directors receive dividends. Employees consult on the side. Founders earn interest, equity income or speaking fees. Digital platforms create income streams that did not exist a decade ago. Foreign accounts and investments are more common. Small businesses increasingly earn non-trading income alongside their core activity.
At the same time, Revenue’s visibility has increased. Automatic exchange of information, enhanced reporting requirements, platform reporting rules and improved data analytics mean Revenue often has partial or full insight into extra income streams before a taxpayer declares them. What once relied on disclosure alone is now subject to verification.
As a result, extra income has become one of the most frequent triggers for Revenue queries not because it is inherently problematic, but because it is frequently misunderstood.
One of the most common forms of extra income is interest on savings. As interest rates have risen, Irish residents are earning more from deposit accounts, fixed-term savings and credit unions. While DIRT may be deducted automatically on Irish accounts, this does not always mean the income is fully dealt with for tax purposes. For companies, foreign accounts or self-assessment taxpayers, disclosure is often still required.
Rental income is another area where people frequently underestimate tax obligations. Income from letting property whether long-term, short-term or occasional is taxable. This includes income from renting out a room, short-term holiday lets, or letting property temporarily while living elsewhere. Expenses may reduce the taxable amount, but the obligation to declare remains.
Dividends received from companies are also taxable and must be declared, even where Dividend Withholding Tax has been applied. This is particularly relevant for company directors and shareholders who receive dividends alongside salary.
Employment-related share income has become increasingly common, especially among startups and growing SMEs. Shares, options, restricted shares and growth shares can give rise to taxable income or reporting obligations even where no cash is received. This is one of the least intuitive areas of extra income and one of the most heavily scrutinised by Revenue.
Many individuals also earn fees from side activities, such as consultancy, advisory work, speaking engagements, board roles or contract services. Even when these activities are irregular or modest in scale, the income is taxable.
Foreign income is another significant category. Interest, dividends, rental income or employment income earned abroad must be declared in Ireland where the individual is Irish resident or ordinarily resident. Revenue now receives extensive information under international reporting standards, making non-disclosure increasingly risky.
Finally, income earned through digital platforms selling goods online, providing services through apps, renting property through platforms or monetising content is taxable regardless of scale or formality. Casual does not mean tax-free.
Most errors around extra income arise from assumptions that feel reasonable in everyday life but do not align with tax law.
People often assume that if income is small, it does not matter. Others believe that if some tax was deducted, nothing further is required. Foreign income is sometimes assumed to be outside Irish tax simply because it was earned abroad. Once-off income is often dismissed as irrelevant. Many assume that if Revenue wants the information, Revenue will ask.
In reality, the Irish tax system is based on self-assessment. Revenue expects taxpayers to understand their income sources and disclose them accurately. The absence of a prompt does not remove the obligation.
Extra income is often the factor that determines whether a taxpayer must file under self-assessment.
Individuals with significant extra income, including company directors, landlords and the self-employed, are required to file a Form 11. This return captures all income sources, including employment income, rental income, interest, dividends, foreign income and share-based income. Even where tax has already been withheld, disclosure is often still required.
PAYE taxpayers with smaller amounts of extra income may be able to declare it through Form 12 or myAccount, but this depends on thresholds and the type of income involved. Foreign income, in particular, almost always requires disclosure.
Understanding which form applies and why is essential to compliance.
Company directors are particularly exposed when it comes to extra income. Directors often have multiple income streams running simultaneously, including salary, dividends, savings interest, rental income, loan interest and share-based remuneration.
Revenue does not view these streams in isolation. Director profiles are often reviewed holistically, with declared income compared against company accounts, personal assets and lifestyle indicators. What feels like a collection of separate income sources to a director may appear as a single financial picture to Revenue.
Extra income is not limited to individuals. Companies also earn income outside their core trade. Deposit interest, rental income from surplus property, investment returns and foreign income are all taxable under corporation tax rules.
DIRT deducted on company interest is not a final tax. It must be reconciled through the corporation tax return, and the timing difference between deduction and credit can affect cashflow if not planned for.
SMEs often overlook this simply because the amounts feel secondary to trading income until they are not.
Revenue’s interest in extra income is driven by risk analysis rather than suspicion. Historically, extra income has been where omissions occur most frequently. Modern compliance relies on data matching, third-party reporting and behavioural analysis. Extra income often becomes the starting point for broader engagement when discrepancies appear.
The question Revenue asks is not whether extra income exists, but whether it has been understood, classified and disclosed correctly.
When extra income is omitted, the consequences depend on timing and response. In many cases, early voluntary disclosure can significantly reduce penalties and interest. Once Revenue initiates contact, mitigation options narrow.
This is why addressing uncertainty early is so important. Extra income issues are usually manageable until they are ignored.
At Amergin Consulting Ltd., we help clients understand extra income in context rather than isolation. We start by reviewing all income streams together, identifying where income may be taxable, and clarifying how it should be treated.
For individuals and directors, this includes reviewing savings interest, dividends, rental income, foreign income and share-based remuneration, preparing accurate Form 11 filings, managing disclosures and supporting voluntary disclosures where required.
For SMEs and companies, we review non-trading income, reconcile DIRT credits, ensure correct corporation tax treatment, integrate extra income into financial forecasting and strengthen record-keeping so that figures align across accounts and returns.
Our focus is not aggressive tax planning. It is clarity, compliance and predictability.
As Irish taxpayers plan for 2026, attention naturally turns to payroll costs, VAT, corporation tax and compliance changes. Extra income is often overlooked because it feels peripheral. In reality, it is precisely where small oversights create disproportionate problems.
Addressing extra income proactively removes blind spots. It allows individuals and businesses to move forward with confidence rather than uncertainty.
Extra income is now a normal feature of Irish financial life. What matters is not whether you have it, but whether you understand how it is taxed and reported.
In 2025–2026, Revenue expects full disclosure, accurate classification and timely reporting. With the right advice and systems, extra income becomes just another managed part of your financial picture not a source of anxiety.
At Amergin Consulting Ltd., we help clients replace assumption with certainty, and uncertainty with structure, so extra income supports financial stability rather than undermines it.
Amergin Consulting Ltd. is a Dublin-based chartered accountancy and business advisory firm serving Ireland’s SMEs and growth companies across construction, technology, professional services, and renewable energy.
We specialise in Accounting, Payroll, Taxation, and CFO Services that help businesses build stronger foundations for profit and compliance.
Need help running a year-end tax review or planning your 2026 payroll changes?
Amergin Consulting’s finance and tax team can help you identify deductions, forecast cash flow, and ensure full compliance before the year closes.
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This article is for general informational purposes only and does not constitute financial or tax advice. While every effort has been made to ensure accuracy, Budget 2026 legislation may change upon enactment of the Finance Act 2025.
Public should seek professional advice tailored to their specific circumstances before acting on any points discussed.
Revenue Commissioners — Is your extra income taxable?
https://www.revenue.ie/en/additional-incomes/is-your-extra-income-taxable/index.aspx
Revenue Commissioners — Additional Incomes guidance
https://www.revenue.ie