What are the thresholds and CAT tax rate?

Inheritances can be received free from Capital Acquisitions Tax (CAT) up to a certain amount. The tax-free amount varies depending on your relationship to the person giving the inheritance (Group Threshold). There are three different groups. Each group has a threshold that applies to the total inheritance you’ve received since 5th December 1991, in that group.

At present, the current rate of Capital Acquisition Tax is 33%*.

Capital Acquisitions Tax thresholds after 2nd October 2024.

A. Son or daughter - €400,000

B. A parent**, brother, sister, niece, nephew or grandchild of the person giving the gift - €40,000

C. All other relationships, other than those mentioned in A or B - €20,000

*CAT is charged at 33% on inheritances made on or after 5th December 2012.

**In certain circumstances, a parent taking an inheritance from a child can qualify for Group A threshold.

Example of how Inheritance Tax works

Net/Taxable Value of Inheritance: €900,000

2 Beneficiaries: Son and Daughter.

Breakdown of inheritance due:

· Son or Daughter

· Gross inheritance to each beneficiary - €450,000

· Less tax-free amount threshold - €400,000

· Relationship: child i.e. Group A.

· Gross taxable inheritance per child - €50,000

· Tax payable at 33% per child - €16,500

· Overall inheritance tax due - €33,000

This is correct as of July 2026.

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