Irish Capital Acquisitions Tax (CAT) Calculator
Estimate your Capital Acquisitions Tax (CAT) using current lifetime group thresholds and condition-dependent annual small gift exemptions.
Live Calculation Results
Annual Exclusion
€0
Tax-free annual limit of €3,000 applied.
Applied to Pool
€0
Amount deducted from your €400,000 threshold.
Taxable Excess
€0
Balance remaining over your group threshold.
CAT Tax Due
€0
Final liability calculated at the standard 33% rate.
* Note: If cumulative benefits in any group exceed 80% of your threshold (€320,000), a Revenue IT38 return is required.
Capital Acquisitions Tax Ireland (2026 Gift & Inheritance Rules)
Last Updated: June 2026
What Is Gift or Inheritance Tax in Ireland?
Gift or inheritance tax in Ireland is officially known as Capital Acquisitions Tax (CAT). It applies when you receive money or assets from another person, either while they are alive (a gift) or after they die (an inheritance). This can include cash, property, shares, land, or any valuable asset.
You do not pay tax on everything you receive. Instead, Ireland uses a lifetime threshold system, and tax only applies once you go above a certain limit. After that point, the excess amount is taxed at a flat rate of 33%.
How Capital Acquisitions Tax Works
CAT is based on a simple idea: your lifetime total from certain people is tracked and added together. Every gift or inheritance you receive from the same group (for example, your parents) is combined over your lifetime. Once the total goes above your allowance, the excess becomes taxable.
There is no yearly reset. The calculation is cumulative and aggregates qualifying benefits all the way back to 5 December 1991.
CAT Tax-Free Thresholds (2026)
The amount you can receive tax-free depends strictly on your relationship with the person giving you the gift or inheritance:
- Group A — €400,000: Applies mainly to children, adoptive children, and step-parents (in most cases) inheriting from a parent. This is the highest threshold because it applies to direct family transfers.
- Group B — €40,000: Applies to siblings, nieces and nephews, grandparents, grandchildren, and other close linear relatives.
- Group C — €20,000: Applies to friends, cousins, and anyone not explicitly covered in Group A or B.
How Lifetime Aggregation Works
One of the most important parts of CAT is that it is not calculated per gift. Instead, everything you receive within the same group is added together across your entire lifetime.
For example, if you receive a €250,000 gift today, and another €200,000 inheritance later from your parents, these are combined under Group A to equal €450,000. Since the Group A threshold is €400,000, the excess €50,000 becomes fully taxable at 33%.
Example: €450,000 Lifetime Inheritance
| Item | Amount |
|---|---|
| Total Inheritance Value | €450,000 |
| Group A Tax-Free Threshold | €400,000 |
| Taxable Balance | €50,000 |
| CAT Flat Tax Rate | 33% |
| Total Tax Due | €16,500 |
The Small Gift Exemption (€3,000 Rule)
Ireland allows a powerful, separate annual exemption known as the small gift exemption. You can receive up to €3,000 per year from any single person completely tax-free.
- It does not affect or reduce your lifetime CAT group threshold.
- It resets completely every calendar year.
- It applies per individual donor, not in total across your life.
Strategic Example: If 2 parents and 4 grandparents each grant you €3,000 dynamically, you get €18,000 per year tax-free. Over a 10-year span, that equates to €180,000 positioned entirely outside the standard CAT thresholds.
Gift vs. Inheritance Tax
From a legal tax assessment perspective, gifts and inheritances are bound to identical rates and thresholds under CAT. The primary distinction is operational: active lifetime gifts are eligible for the €3,000 small gift exemption, whereas testamentary inheritances received post-death cannot utilize it.
Common CAT Mistakes in Ireland
1. Not tracking lifetime totals: Assuming separate transfers evaluate independently, when in reality everything aggregates permanently over time.
2. Ignoring relationship groups: Miscalculating the available buffer by mapping family branches into incorrect threshold boundaries.
3. Not using the €3,000 exemption: Failing to use annual handovers early on, missing opportunities to shelter major capital from eventual liabilities.
When Do You Pay and File CAT?
You must submit a formal CAT IT38 Return through Revenue's self-assessment system if the cumulative asset values you have received exceed 80% of your total Group threshold limit. This filing obligation remains mandatory even if no net tax liability is owed.
Frequently Asked Questions
Yes. Capital Acquisitions Tax is the official legislative term for both gift tax and inheritance tax in Ireland.
No. All transfers of wealth, gifts, or inheritances between spouses or registered civil partners are fully exempt from CAT, without any cap or threshold.
You cannot illegally evade it, but you can systematically minimize exposure using the €3,000 annual small gift exemption, long-term lifetime planning strategies, and staged transfers over time.
No. You only incur a tax liability when your cumulative lifetime total within a specific relationship group (Group A, B, or C) goes above that group's threshold.
Yes. CAT is assessed on the open market value of the property at the time the transfer valuation date is established.
Why CAT Matters for Long-Term Planning
Without active estate optimization, a 33% flat fiscal charge can aggressively reduce the value of ancestral property or cash reserves passed down to generations. Constructing clear, long-term plans and taking advantage of allowances ensures assets transfer fluidly and efficiently.