Earning money from renting out your garage, attic, or spare room for storage? Great — it's one of the easiest side incomes going. But you need to know how it's taxed. The good news is that for most hosts, the tax situation is straightforward and the amounts involved are manageable. Here's what you need to know.

Is Storage Rental Income Taxable in Ireland?

Yes. Any income you earn from renting out space — whether it's a garage, attic, shed, spare room, or driveway — is taxable income in Ireland. It must be declared to Revenue and tax paid at your marginal rate.

There's no minimum threshold below which you're exempt. Even €50/month needs to be declared, though at low amounts the tax impact is minimal.

What Type of Income Is It?

Storage rental income in Ireland is generally treated as either:

  • Rental income (Case V): If you're renting out a defined space under a formal or informal arrangement, Revenue typically classifies this as rental income.
  • Miscellaneous income (Case IV): In some circumstances, particularly ad-hoc or short-term arrangements, it might be classified here.

For most Packhood hosts earning a regular monthly income from a defined space, Case V rental income is the most common classification. If in doubt, ask your accountant or contact Revenue directly — they're helpful with straightforward queries.

Does Rent-a-Room Relief Apply?

No. The Rent-a-Room Relief scheme (which allows up to €14,000 tax-free from letting a room) applies specifically to residential accommodation — i.e., someone living in your home. Storage rental does not qualify for this relief.

This is the most common misconception among new storage hosts, so it's worth being clear: storage income is taxed normally.

What Expenses Can You Deduct?

You can reduce your taxable income by deducting legitimate expenses related to the storage space. Common deductions include:

  • A proportion of home insurance: If your home insurance covers the space being rented (e.g., the garage), you can apportion a percentage.
  • Repairs and maintenance: Fixing a leak in the garage roof, replacing a lock, or painting the space.
  • Electricity: If the space uses power (lighting, heating), a reasonable proportion of your electricity bill.
  • Platform fees: Any service fees charged by the storage platform.
  • Minor equipment: Shelving, security cameras, or padlocks purchased for the space.

Keep receipts for everything. Revenue can request documentation at any time.

How Much Tax Will You Actually Pay?

Let's work through a realistic example:

  • Annual storage income: €1,200 (€100/month for a Dublin garage)
  • Deductible expenses: €200 (insurance proportion, minor repairs, a new padlock)
  • Taxable income: €1,000

If you're a PAYE worker on the higher rate (40%), plus PRSI (4%) and USC (roughly 4.5%):

  • Tax at 40%: €400
  • PRSI at 4%: €40
  • USC at ~4.5%: €45
  • Total tax: approximately €485 on €1,000 net income

That still leaves you with around €515 in your pocket from a space that was earning nothing before — plus you keep the €200 in expenses you've already spent. If you're on the lower tax rate (20%), your take-home is even higher.

How to Declare Storage Income

  • PAYE workers: Declare via Form 12 (available through myAccount on Revenue.ie). You can add rental income under the property income section.
  • Self-assessed individuals: Declare via Form 11, under rental income.
  • Preliminary tax: If your non-PAYE income exceeds certain thresholds, you may need to pay preliminary tax. For small amounts (under €5,000), this is usually handled through your annual return.

Record-Keeping Tips

  • Keep a simple spreadsheet: date, amount received, any expense incurred.
  • Packhood generates booking receipts automatically — save these.
  • Photograph receipts for expenses (use your phone's document scanner).
  • Revenue requires you to keep records for 6 years.

Do You Need an Accountant?

For straightforward storage income under €3,000/year, most people can manage their own tax return. The Revenue website and myAccount portal are designed for exactly this kind of addition. If your situation is more complex (multiple income sources, rental properties, self-employment), an accountant is worth the €200–€400 annual fee for peace of mind.

The Bottom Line

Storage income is taxable, but the process is straightforward and the amounts are manageable. Don't let tax concerns stop you from earning money from unused space — just declare it properly, keep your receipts, and you're covered. For more on what you can earn, see our guides on passive income from a spare room and how much you can earn renting an attic.

Ready to start earning? List your space on Packhood and start generating income from your unused storage space.