Costs & grants

Tax and VAT for homeowners and landlords

VAT on heat pumps is 9%. Here's how A/C compares and the reliefs open to landlords.

Short answer

Supplying and installing a heat pump heating system is charged at 9% VAT since 1 January 2025. Cooling only A/C is usually 13.5% or 23%. Landlords can deduct up to €10,000 per rental property for grant supported retrofits. This is a guide, not tax advice.

Costs and figures

What you're buying	Typical VAT	Notes
Heat pump heating system, supplied and installed	9%	Since 1 January 2025
Cooling only A/C, supplied and installed	13.5% or 23%	23% if equipment is over two thirds of the price
Equipment bought on its own	23%	Standard rate for goods
Servicing and repairs	13.5%	Reduced rate service

Source: Revenue: VAT on heat pump heating systems. Last updated October 2026.

Homeowners

There's no income tax relief for homeowners, but the 9% VAT rate is already built into your installer's quote. If a heat pump quote shows 13.5% or 23%, ask why.

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Landlords

Landlords can deduct qualifying retrofit costs, including a heat pump, from rental income, up to €10,000 per rental property, where the work is supported by an SEAI grant. The relief is time limited, so check the current end date with Revenue.

Your BER and the value of your home

A heat pump usually lifts a BER by several grades. That helps resale value, can unlock green mortgage rates and is what lenders check for upgrade loans.

Is this right for you?

Your quote shows VAT at 9% for a heat pump

If you're a landlord, your works are grant supported

You've spoken to an accountant about anything you're relying on

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