Inheritance Tax in Ireland (CAT): A Complete Guide for 2026
Inheritance tax in Ireland is officially called Capital Acquisitions Tax (CAT). It is paid by the person receiving an inheritance or large gift — not by the estate. The rules turn on three things: how much you receive, your relationship to the giver, and what you have already received from the same group over your lifetime. This 2026 guide breaks the rules down in plain English with the current thresholds, the 33% rate, the most useful reliefs, and how to plan around it.
Want a quick answer? Use our free Irish inheritance tax (CAT) calculator to estimate the tax on a gift or inheritance in seconds.
Quick answer: Capital Acquisitions Tax (CAT) in Ireland is charged at 33% on the value above your lifetime tax-free threshold. The 2026 thresholds are €400,000 (Group A — child from parent), €40,000 (Group B — sibling, niece/nephew, grandchild), and €20,000 (Group C — everyone else). CAT is paid by the beneficiary, not the estate. The valuation date determines when the tax is due — typically 31 October in the year after you receive the inheritance.
What is Capital Acquisitions Tax (CAT)?
CAT is the tax you pay when you receive a gift or inheritance above a certain value. It is governed by the Capital Acquisitions Tax Consolidation Act 2003 (as amended) and collected by the Revenue Commissioners. The key point: CAT is calculated on the recipient’s side, not the estate’s. Two people receiving the same amount from the same estate can end up with very different tax bills depending on their relationship to the deceased.
The 2026 Group thresholds
Every person has a lifetime tax-free threshold under each of three groups, based on their relationship to the person making the gift or leaving the inheritance.
- Group A — €400,000: child (including adopted, step- and certain foster children) inheriting from a parent. Also applies to a parent inheriting absolutely from a child where the child predeceased the parent.
- Group B — €40,000: brother, sister, nephew, niece, grandchild, lineal ancestor, great-grandchild.
- Group C — €20,000: anyone else — including cohabiting partners (who are not married or in a civil partnership), close friends, and step-relatives outside Group A.
The threshold is a lifetime aggregate — you add up everything you have ever received in that group since 5 December 1991 and the threshold applies to that total.
How is CAT calculated?
The mechanics are straightforward in principle:
- Establish the relationship between you and the giver, which fixes your Group threshold.
- Add the value of this gift/inheritance to everything you have previously received in the same group since 5 December 1991.
- Subtract your lifetime Group threshold.
- Apply CAT at 33% to whatever remains.
Example: a child has already received €100,000 in lifetime gifts from a parent. They now inherit a house worth €450,000. Total received in Group A is €550,000. Less the €400,000 threshold = €150,000 taxable. CAT due = €150,000 × 33% = €49,500.
Important reliefs and exemptions
Small gift exemption
You can receive up to €3,000 from any one person in any one calendar year tax-free, and it does not use up any of your lifetime threshold. Both parents can each give a child €3,000 every year — €6,000 in total — with no CAT consequences.
Spouse / civil partner exemption
Gifts and inheritances between spouses and registered civil partners are completely exempt from CAT. There is no threshold and no cap.
Dwelling House Exemption
If you inherit a property and you have lived in it as your only or main home for the three years before the inheritance, do not own (or have an interest in) any other dwelling, and continue to live there for six years after, the inheritance can be entirely exempt from CAT. Strict conditions — get advice.
Agricultural Relief
Reduces the taxable value of qualifying agricultural property (farmland, livestock, machinery) by 90%, where the recipient is a “farmer” by Revenue’s definition and meets activity and retention conditions.
Business Relief
Similar to agricultural relief — 90% reduction in the taxable value of qualifying business assets, subject to active-business and holding-period conditions.
Charity exemption
Gifts and inheritances to qualifying charities (registered with the Charities Regulator) are fully exempt — useful in estate planning. See our guide to leaving a gift to charity in your will.
When do you have to file and pay CAT?
CAT works on a tax-year that runs from 1 September to 31 August. If the valuation date (typically the date of the inheritance or date of grant of probate) falls within that period, the return and payment are due by 31 October of that year. Late filing triggers automatic surcharges and interest.
You must file a CAT return (Form IT38, filed online via Revenue’s ROS) if the total you have received in any one group from 5 December 1991 onwards exceeds 80% of the relevant Group threshold — even if no tax is actually due.
Common planning strategies
- Use the €3,000 small gift exemption every year — over 20 years, two parents can transfer €120,000 per child outside the CAT system.
- Make use of grandchildren as beneficiaries — they each have a separate Group B threshold (€40,000).
- Spouse transfers first — assets transferred to a spouse are exempt, and the spouse then has their own threshold to use.
- Consider the Dwelling House Exemption for the family home where eligible.
- Section 72 / Section 73 life policies — properly set up, the proceeds can be used to pay CAT without themselves being taxed.
How CAT interacts with probate
The personal representative (executor or administrator) is generally not responsible for paying each beneficiary’s CAT — that is the beneficiary’s own obligation. However, the executor must hold back the inheritance until they are satisfied the beneficiary will deal with their CAT. Many solicitors will require the beneficiary’s IT38 to be filed (or proof CAT is being paid) before distributing major assets. See our guide to probate fees in Ireland for how this fits into the wider estate administration.
What is NOT CAT?
Don’t confuse Capital Acquisitions Tax with:
- Capital Gains Tax (CGT) — paid by the giver when they dispose of an asset that has gone up in value during their ownership.
- Stamp Duty — paid on transfers of certain property, separate from CAT.
- Income Tax — paid on income earned by the estate during administration, not on the inheritance itself.
A single transaction can trigger more than one of these — for example, a parent gifting a property to a child during lifetime may face CGT on the parent’s side AND CAT on the child’s side.
Frequently asked questions
How much can I inherit tax-free in Ireland in 2026?
A child from a parent can inherit up to €400,000 over their lifetime (Group A). A brother, sister, niece, nephew or grandchild can receive up to €40,000 (Group B). Everyone else can receive up to €20,000 (Group C). Anything above the threshold is taxed at 33%.
Who pays inheritance tax in Ireland — the estate or the beneficiary?
The beneficiary. CAT is calculated and paid by the person receiving the gift or inheritance, not by the estate as a whole. Two people inheriting the same amount can have very different CAT bills depending on their relationship to the deceased.
What is the inheritance tax rate in Ireland?
CAT is charged at a flat rate of 33% on the value above the relevant Group threshold. Some assets attract reliefs (Agricultural Relief, Business Relief, Dwelling House Exemption) that can reduce the taxable value before the 33% rate is applied.
Do I have to pay tax on a gift from my parents in Ireland?
Not necessarily. You can receive up to €3,000 per calendar year from each parent tax-free under the Small Gift Exemption. Anything above that uses up part of your €400,000 Group A lifetime threshold. Only when you exceed the threshold is CAT actually payable.
When do you have to file a CAT return in Ireland?
If the total you have received in the relevant Group from 5 December 1991 onwards exceeds 80% of your Group threshold, you must file Form IT38 (online via Revenue’s ROS). Returns and payment are due by 31 October of the year following the valuation date. Late filing triggers surcharges and interest.
Get fixed-fee inheritance tax advice
If you are receiving an inheritance, planning your estate, or want to know whether CAT will be an issue for your beneficiaries, book a consultation. We will work through your specific situation, including any reliefs that may apply, and tell you what to do next. See also our guides to making a will in Ireland, acting as executor, and probate fees.
This article is for general information only and is not legal or tax advice. CAT rules and thresholds change with each Finance Act. For advice on your specific situation, please consult a qualified Irish solicitor or tax adviser. Online Legal Services is regulated by the Law Society of Ireland.
Need help with this? Fixed-fee help from regulated Irish solicitors: Fixed-Fee Conveyancing · Talk to a Property Solicitor.
