Inheritance tax (CAT) in Ireland
Inheritance tax in Ireland is called Capital Acquisitions Tax. Understanding the group thresholds and reliefs can save your family a significant amount.
When you inherit (or receive a large gift), you may have to pay Capital Acquisitions Tax (CAT). CAT is charged at 33% on the value you receive above your lifetime tax-free threshold. Which threshold applies depends on your relationship to the person you inherit from.
CAT group thresholds (2026)
- Group A — €400,000: gifts/inheritances from a parent to a child (and some others, e.g. certain foster children or a parent inheriting in full from a child).
- Group B — €40,000: from a brother, sister, niece, nephew, grandparent or grandchild.
- Group C — €20,000: from anyone else (e.g. cousins, friends, unrelated persons).
Thresholds are lifetime totals. Prior gifts/inheritances within the same group since 5 December 1991 count towards the threshold. Budgets can change these figures, so always confirm the current thresholds with your solicitor or Revenue.
Key reliefs and exemptions
- Spouse/civil partner exemption: transfers between spouses and civil partners are exempt from CAT.
- Dwelling house exemption: can apply where a beneficiary has lived in the home and meets strict conditions.
- Agricultural relief and business relief: can reduce the taxable value of qualifying farms and businesses by up to 90%.
- Small gift exemption: €3,000 per year per giver is free of CAT.
When and how CAT is paid
CAT is a self-assessed tax. Where the total of taxable gifts/inheritances in a group exceeds 80% of the threshold, the beneficiary must file a return. The "pay and file" deadline depends on the valuation date — typically 31 October for benefits in the year to the previous 31 August. A solicitor or tax adviser will calculate and file this for you.
Plan ahead and reduce the bill
Good planning — using exemptions, reliefs and the annual small gift exemption — can legitimately reduce CAT. Tell us your county and we'll match you with a solicitor who advises on inheritance tax.
Frequently asked questions
What is the inheritance tax rate in Ireland?
CAT is charged at 33% on the value received above your relevant group threshold.
How much can a child inherit tax-free?
As of 2026 the Group A threshold (parent to child) is €400,000. Amounts above that are taxed at 33%, subject to reliefs. Confirm current figures, as Budgets can change them.
Do spouses pay inheritance tax?
No. Inheritances and gifts between spouses and civil partners are exempt from Capital Acquisitions Tax.
Do I have to file a CAT return?
You must file if the total benefits in a group exceed 80% of the threshold, even if no tax is due. A solicitor can handle this for you.