Farm inheritance tax calculator with Agricultural Relief (Ireland 2026)

Inheriting a farm in Ireland can qualify for Agricultural Relief, reducing the taxable value by 90% if the conditions are met. This calculator compares the CAT with and without the relief for 2026, including the new 2025 active-farmer disponer test.

Agricultural Relief, in Sections 89 and 89A of the Capital Acquisitions Tax Consolidation Act 2003, reduces the taxable value of inherited farm property by 90%. A €1 million farm is treated as €100,000 for CAT purposes. Combined with the Group A threshold of €400,000 for a child, a farm of up to €4 million can pass to a child with no CAT arising at all.

The conditions are strict and were tightened by Finance Act 2024 for inheritances from 1 January 2025 onwards. Three tests must all be met:

First, the beneficiary asset test: 80% of the beneficiary's total assets after the inheritance must be agricultural.

Second, the beneficiary activity test: the beneficiary must either farm the land personally (spending half their normal working time on farming) or lease it to someone who does, for at least 6 years.

Third, the new disponer test: the deceased must have been an active farmer or have leased the land to an active farmer for the 6 years before death (this test applies to inheritances from 1 January 2025 and is in place until 31 December 2030).

Clawback of the relief applies if the land is sold within six years of the inheritance unless proceeds are reinvested in agricultural property within a year.

How this calculator works

The calculator asks for the farm value, the relationship, and whether all three Agricultural Relief tests are met. It calculates CAT with the 90% reduction and compares to the CAT without the relief.

What to do with the number

The saving from Agricultural Relief can be very significant. Getting the claim right matters because clawback runs the full CAT plus interest back to the valuation date. The Complete Bundle includes the Agricultural Relief assessment; for farms worth more than €1 million, working with a solicitor on the overall structure is usually advisable.

This calculator is a preparation tool using Irish tax rates and rules for 2026. It is not legal or tax advice. For complex estates, consult a solicitor or tax adviser. All values are estimates based on the information you provide.