CAT Threshold Ireland 2026 — How Much Can You Inherit Tax-Free?

Capital Acquisitions Tax (CAT) — Ireland's inheritance and gift tax — is charged at 33% on the value of inheritances and gifts above a tax-free threshold. The threshold depends on the relationship between the person who gives and the person who receives. Here are the thresholds for 2026.

CAT Thresholds 2026

What Do These Thresholds Mean in Practice?

Each person's threshold is a lifetime cumulative amount. All gifts and inheritances received from persons in the same group, dating back to 5 December 1991, are added together and measured against the threshold. Once the lifetime total exceeds the threshold, CAT at 33% is paid on the excess.

Example: You are a child who received a gift of €100,000 from a parent in 2020, and you now inherit €400,000 from the same parent. Your combined Group A total is €500,000. After deducting the threshold (€335,000), you pay 33% CAT on €165,000 = €54,450.

Has the CAT Threshold Changed Recently?

The Group A threshold was increased in Budget 2024 from €335,000 and has remained at that level for 2026. Thresholds are periodically reviewed in the annual Budget. Commentators have called for higher thresholds given the rise in property values — this remains a political issue.

Key Exemptions That Bypass Thresholds

• Spouse / civil partner: All inheritances between spouses and civil partners are CAT-exempt — no threshold applies
• Small gift exemption: Annual gifts of up to €3,000 per person are exempt and do not count against the lifetime threshold
• Dwelling house exemption: A qualifying inherited home can be CAT-free regardless of value — see Family Home Inheritance Cork
• Agricultural Relief: 90% reduction on qualifying agricultural assets — see Agricultural Relief Ireland
• Business Relief: 90% reduction on qualifying business assets — see Business Relief Ireland

How to Minimise CAT for Your Cork Family

• Use the annual small gift exemption (€3,000 per person per year)
• Use the dwelling house exemption where possible
• Structure farm and business assets to qualify for Agricultural or Business Relief
• Take out a Section 72 life insurance policy to fund anticipated CAT bills
• Plan with a Cork estate planning solicitor and accountant — the savings typically far exceed the planning costs

CAT Returns and Payment

CAT is self-assessed. Returns must be filed and tax paid by 31 October in the year following the inheritance. Late payment attracts interest at approximately 8% per year. Revenue can audit CAT returns for up to 4 years (or longer in cases of fraud). See: Inheritance Tax Ireland — Full Guide.