Tax for Unmarried Couples in Ireland: What You Need to Know
More couples than ever are choosing to live together without getting married. Whether you are sharing a home, raising children or paying a mortgage together, it is important to know that Ireland’s tax system does not treat cohabiting partners in the same way as married couples or civil partners.
That difference can affect your annual income tax and create a particularly large, unexpected bill when a partner dies. This guide explains the main issues and practical steps you can take. Bond & Co. helps couples understand their position and plan ahead with confidence.
Income tax: no joint assessment for cohabiting couples
For income tax purposes, cohabiting couples are each taxed as single individuals. You cannot combine your incomes, transfer unused rate bands between you or claim the married couple’s tax credit simply because you live together.
How the 2026 figures compare
In 2026, a single person pays income tax at 20% on the first €44,000 and 40% on the balance. A married couple with one income can use a €53,000 band at 20%, while a married couple where both partners work can have up to €88,000 taxed at 20%, subject to the applicable allocation rules.
The tax credits are also different: €2,000 for a single person compared with €4,000 for a married couple. For example, if one unmarried partner earns €70,000 and the other earns nothing, the household pays significantly more tax than a married couple in the same one-income situation, because the couple cannot access joint assessment or the married couple’s credit.
For a clear overview of the rules, see Citizens Information guide to taxation of cohabiting couples. Your exact outcome will depend on pay, pension contributions, credits and other circumstances, so a calculation is worthwhile before making decisions about work or ownership.
Inheritance tax (CAT): the biggest risk
Inheritance is where the difference can be most dramatic. Married couples and civil partners can inherit from each other completely free of Capital Acquisitions Tax (CAT), with no limit on the value transferred.
An unmarried partner, however, is generally treated as a Group C beneficiary. The Group C threshold is only €20,000, and CAT at 33% applies to the taxable amount above that threshold, after taking account of any relevant prior gifts or inheritances.
A family home example
Imagine one partner dies and leaves a family home worth €500,000 to the surviving unmarried partner. Subject to the detailed CAT rules and assuming no other reliefs or prior benefits, €480,000 is above the €20,000 threshold. At 33%, that could produce a CAT bill of €158,400, potentially forcing the survivor to find substantial cash or consider selling the home.
A married couple in the same broad scenario would face zero CAT on the inheritance. This issue is especially relevant in Dublin, where property prices can be high. The Revenue’s CAT thresholds and rates explains the current thresholds, rates and aggregation rules.
Capital Gains Tax (CGT) and shared assets
Married couples can generally transfer assets between each other without triggering CGT. Transfers between unmarried partners do not receive the same automatic treatment: they are treated as disposals and may create a CGT liability at the 33% rate, depending on the asset and the gain.
Your home needs particular care. Principal Private Residence (PPR) relief may apply where both names are on the mortgage and both partners live in the property, with each person claiming relief on their share. If only one partner’s name is on the deeds, generally only that person qualifies for PPR relief, so ownership should be reviewed before transferring an interest.
Children: which credits are available?
Having children does not make a couple jointly assessed for tax. Each parent continues to claim their own tax credits independently, and the Single Person Child Carer Credit (SPCCC) of €1,750 is available to the primary carer parent, subject to the qualifying conditions.
Only one parent can claim the SPCCC. It is often worth checking which parent benefits most from claiming it, particularly where one parent has lower income, insufficient tax liability or other credits.
What can unmarried couples do?
1. Make a Will
Without a Will, a cohabiting partner has no automatic right to inherit in the way a spouse or civil partner does. A properly drafted Will can set out your wishes, although it cannot by itself remove the CAT rules or guarantee that the survivor can retain the home without a tax plan.
2. Consider a cohabitation agreement
A cohabitation agreement can record how you will share mortgage payments, bills, savings and other assets, and what should happen if the relationship ends. It is a practical way to reduce uncertainty, particularly where contributions are unequal or children are involved.
3. Review life insurance and ownership
Life insurance written in trust may pay out to a partner without passing through the deceased’s estate, which can help provide liquidity for mortgage payments or a CAT bill. Trust and CAT treatment is fact-specific, so obtain legal and tax advice before setting up or changing a policy.
4. Get advice before making changes
An accountant can review your income split, property ownership, mortgage arrangements, pensions and insurance, and help you plan ahead. Do not assume that moving an asset into joint names is tax-free: the timing, consideration paid and reliefs available can change the result.
5. Explore all your options
For some couples, marriage or civil partnership may make financial sense; for others, it may not. This is not a recommendation, but it is worth comparing the legal, personal and tax consequences with professional advisers so you can make an informed choice.
Plan now, rather than at a difficult time
Cohabiting couples can build a secure financial plan, but the tax system does not provide the same automatic protections as marriage or civil partnership. A review while both partners are well and decisions are flexible is far easier than trying to solve income, ownership or inheritance issues after a death or relationship breakdown.
If you are living together in Swords, Dublin or elsewhere in Ireland, contact page Bond & Co. for a friendly, practical tax review. We can help you understand the numbers, identify risks and plan next steps. Visit the Bond & Co. homepage to learn more about our chartered certified accountancy services.