Ireland taxes income in two bands: 20% on the first €44,000 (single PAYE employee) and 40% above that, plus USC (0.5–8% across four bands) and PRSI (4.2% Jan–Sep 2026; 4.35% from 1 October 2026). A single PAYE employee with sufficient qualifying employment income can receive a €2,000 Personal Tax Credit and Employee Tax Credit of up to €2,000. The combined effective rate in the worked assumptions below runs from about 12% at €30,000 to 35% at €100,000.
The numbers above are the easy bit. The harder bit — and the reason this page exists — is what newcomers leave on the table: the Rent Tax Credit (€1,000/year if you rent privately), unclaimed credits when one spouse earns less, getting stuck on emergency tax for weeks because the job wasn’t registered with Revenue, and the ETF deemed-disposal trap that catches anyone who keeps an investment account from the UK or elsewhere. Use this page to: see what every band actually costs you, work out which credits you can claim, and fix the things Revenue won’t fix for you unless you ask.
How tax works in Ireland
Three separate deductions come off your gross pay, calculated independently:
| Deduction | What it funds | 2026 rate (single PAYE) |
|---|---|---|
| Income tax (PAYE) | General government revenue | 20% up to €44,000; 40% above |
| USC (Universal Social Charge) | Replaces the old income/health levies | 0.5% / 2% / 3% / 8% across four bands |
| PRSI (employee, Class A1) | State Pension, Illness, Maternity, Jobseeker’s | 4.2% Jan–Sep 2026; 4.35% from 1 Oct 2026 |
Income tax is the only one of the three that gets reduced by tax credits. USC and PRSI are charged on gross pay regardless of credits. That’s why two people on the same salary with very different tax credit positions (married vs single, renting vs not, etc.) can have noticeably different take-home figures but nearly identical USC and PRSI lines.
Source for all three: Revenue.ie. Budget 2026 confirmed the bands and rates above.
Income tax bands in 2026
The standard rate band is the slice of income taxed at 20%; everything above it is taxed at 40%. Bands depend on your assessment status:
| Status | 20% band | 40% kicks in at |
|---|---|---|
| Single / widowed (no dependants) | €44,000 | €44,001 |
| Single parent with dependent child | €48,000 | €48,001 |
| Married / civil partner, one income | €53,000 | €53,001 |
| Married / civil partner, two incomes | €53,000 plus the second-income increase, up to €88,000 | varies |
For jointly assessed two-income couples, the €53,000 band increases by the lower of €35,000 or the second spouse’s income, giving a maximum band of €88,000. The increase cannot be transferred between spouses. In practice, €60,000 plus €30,000 produces an €83,000 combined standard-rate band; €60,000 plus €5,000 produces €58,000.
See Revenue’s tax rates, bands and relief charts for the current published figures and other assessment categories.
Standard PAYE credits
Tax credits reduce the income tax you owe euro for euro, up to the Income Tax liability available. The usual credits for a single PAYE employee are:
| Credit | Amount (2026) | Who gets it |
|---|---|---|
| Personal Tax Credit | €2,000 | Eligible single taxpayer; €4,000 for an eligible married/jointly assessed couple, subject to residence rules |
| Employee Tax Credit (PAYE Credit) | Up to €2,000 | Qualifying PAYE income; capped by reference to that income |
| Earned Income Tax Credit | Up to €2,000 | Qualifying earned income; coordinated with the Employee Tax Credit |
| Rent Tax Credit | €1,000 (single) / €2,000 (jointly assessed) | Private renters (see below) |
| Home Carer’s Tax Credit | €1,950 | Married couple, one stays home with dependant |
| Single Person Child Carer Credit | €1,900 | Single parent, child lives with them most of the year |
| Age Tax Credit | €245 single / €490 married | Age 65 and over |
In the common case of a single employee with enough qualifying PAYE income, the €2,000 Personal Tax Credit and €2,000 Employee Tax Credit reduce gross Income Tax by €4,000. On a €60,000 salary under those assumptions, credits reduce gross Income Tax from €15,200 to €11,200.
Worth checking on Revenue’s myAccount once a year: that your credits are correctly assigned to your live employment, that you’ve claimed Rent Tax Credit if you rent, and (if married) that joint assessment is switched on and credits are split the way you want.
Full list of credits: Revenue’s credits and reliefs page.
USC (Universal Social Charge)
USC is a separate tax on gross income, introduced in 2011 to consolidate the old income levy and health levy. It runs in parallel with income tax and uses different bands:
| USC band 2026 | Rate |
|---|---|
| Income up to €12,012 | 0.5% |
| €12,012.01 to €28,700 | 2% |
| €28,700.01 to €70,044 | 3% |
| Above €70,044 | 8% |
Self-employed income above €100,000 pays an extra 3% surcharge, bringing the top USC rate to 11% on that slice.
Exemptions and reduced rates: If total income does not exceed €13,000 in a year, no USC is due. Once income exceeds €13,000, normal USC bands apply to all income. Full Medical Card holders and people aged 70 or over can qualify for reduced rates where income does not exceed €60,000; holding a GP Visit Card does not qualify.
USC bands are marginal: crossing €70,044 subjects only the income above that point to the 8% rate. The principal cliff is the €13,000 exemption threshold, because exceeding it brings the full income into the USC calculation.
Will USC be abolished? No Budget so far has scheduled removal. The 2024–2026 trend has been to lower the 3% middle band slightly and lift its threshold, not to remove the charge. Treat USC as a permanent component of your tax bill.
Source: Revenue’s USC page.
PRSI (Pay Related Social Insurance)
PRSI is the contribution that funds the State’s social-insurance schemes — pension, illness, maternity, jobseeker’s, treatment benefits. Most employees are on Class A1, paying:
- 4.2% from 1 January to 30 September 2026
- 4.35% from 1 October 2026 onwards (per Budget 2026)
The increase is part of a multi-year rise in PRSI rates earmarked for the State Pension fund.
Employer PRSI does not come out of the employee’s pay. For Class A employment through 30 September 2026, employers generally pay 9% where weekly earnings do not exceed €552 and 11.25% above that threshold. From 1 October, those rates rise to 9.15% and 11.4%. Special subclasses and exemptions can differ.
Weekly employee mechanics: No employee Class A PRSI is due where weekly earnings are €352 or less. From €352.01 to €424, a tapered PRSI credit can reduce the amount due. Payroll calculates PRSI by pay period, so a simple annual percentage is not exact for employees close to these thresholds.
Why contribution records matter: A paid contribution comes from insurable work. A credited contribution may protect parts of your record during certain periods when you are not paying PRSI. They are not interchangeable for every benefit.
For the State Pension (Contributory), a person normally needs at least 520 full-rate paid contributions to qualify. Under the Total Contributions Approach, 2,080 reckonable contributions and credits can produce the maximum rate, but transitional yearly-average rules, caring periods, HomeCaring Periods and aggregation with another country’s record can change the result. The applicable 2026 maximum personal rate is €299.30 per week, before any age-related or qualified-adult increases. Each short-term benefit has its own contribution conditions; there is no reliable universal “39-week” rule.
EEA and Swiss records are coordinated under EU social-security rules rather than bilateral agreements with “most EEA states”. UK records may be considered under Ireland–UK and EU withdrawal arrangements. Ireland also has bilateral agreements with specified non-EEA countries. Aggregation can help someone qualify, but each country normally pays its own portion.
Sources: DSP Class A rates and State Pension (Contributory).
What you actually take home
Approximate net pay for a single PAYE employee with the standard €4,000 of credits, no other reliefs:
| Gross | Net per year | Net per month | Effective rate |
|---|---|---|---|
| €30,000 | €26,295.93 | €2,191.33 | 12.35% |
| €40,000 | €33,572.18 | €2,797.68 | 16.07% |
| €50,000 | €39,648.43 | €3,304.04 | 20.70% |
| €60,000 | €44,924.68 | €3,743.72 | 25.13% |
| €70,000 | €50,200.93 | €4,183.41 | 28.28% |
| €80,000 | €54,979.38 | €4,581.62 | 31.28% |
| €100,000 | €64,531.88 | €5,377.66 | 35.47% |
These figures use the full-year blended Class A headline PRSI rate of 4.2375% and therefore do not model the weekly PRSI threshold or tapered credit. They also exclude pension contributions, MyFutureFund auto-enrolment deductions, benefit-in-kind and individual reliefs. For a full band-by-band breakdown and a worked €60,000 example, see the salary expectations guide.
Rent Tax Credit: the credit most newcomers don’t claim
If you rent your home in the private sector, you can claim the Rent Tax Credit:
- €1,000 for a single person
- €2,000 for a married couple or civil partners jointly assessed
You claim it through Revenue’s myAccount. Revenue asks for tenancy and landlord details; eligibility can also extend to qualifying rent paid for a child attending an approved course. An RTB registration requirement can depend on the tenancy type, and Revenue explains what to do where a registration number is not applicable.
Claims are subject to Revenue’s normal four-year time limit, but the maximum was not €1,000 in every earlier year. The maximum single-person credits were €500 for 2022, €500 for 2023, €750 for 2024 and €1,000 for 2025—a maximum of €2,750 across those four years, assuming full eligibility and sufficient Income Tax liability. Each year is claimed separately.
Doesn’t apply to: rent paid to a local authority, rent under HAP/RAS subsidies, rent for a holiday home, or rent paid by an employer as a benefit-in-kind.
Source: Revenue’s Rent Tax Credit page. The amounts were increased to €1,000/€2,000 in Budget 2025 and confirmed for 2026.
Pension contributions: the relief most professionals underuse
Qualifying personal pension contributions and AVCs can receive Income Tax relief at the rate actually paid on the relieved income. A higher-rate taxpayer does not automatically receive 40% relief on every euro: the result depends on how much income is taxed at 40% and on the statutory limits. Pension relief does not reduce USC or PRSI.
Two limits apply: an age-related percentage of earnings and an overall earnings ceiling of €115,000. For the current age bands and claim process, see Revenue’s pension-relief limits.
This is separate from My Future Fund, Ireland’s new auto-enrolment scheme, which works on State and employer top-ups rather than tax relief — the salary guide covers that.
Married couples and civil partners
Once Revenue is notified of a marriage or civil partnership, joint assessment is the applied option unless the couple chooses separate assessment or separate treatment. Joint assessment often lowers the combined bill where incomes differ.
| Treatment | When it makes sense | What you do |
|---|---|---|
| Joint assessment | Often useful where incomes differ | Applied once Revenue is notified, unless another treatment is chosen; the assessable spouse handles the joint return |
| Separate assessment | Both earn well; you want individual responsibility but to share credits | Elect annually; credits are allocated between you |
| Separate treatment | You want tax affairs treated independently | Choose by the applicable deadline; credits and bands cannot be shared |
Under joint assessment, the 20% rate band is €53,000 plus the lower of €35,000 or the second spouse’s income, up to €88,000. The Personal Tax Credit is €4,000. Some credits and bands can be allocated between spouses, but the Employee Tax Credit, Earned Income Credit, employment expenses and second-income band increase are among the items that cannot be transferred.
Year of marriage is treated as a normal year (individually assessed) but you can apply for a year-of-marriage refund in the following year if joint assessment would have produced a lower bill.
Cohabiting couples who aren’t married or in a civil partnership cannot share credits or bands. Ireland’s tax code recognises only married/civil-partnership status here — long-term cohabitants are taxed as singles regardless of years lived together.
Source: Revenue’s joint assessment guidance.
Emergency tax: why your first payslip looks wrong
If you start a job in Ireland without your employer holding a valid Revenue Payroll Notification (RPN) for you, you’ll be put on emergency tax. Three things trigger this:
- No PPS number provided — you’re taxed at 40% with no credits and no rate band, plus 8% USC on everything. This is the harshest version.
- PPS provided but no RPN issued — emergency credits and rate band generally apply for the first four weeks; from week 5, pay is taxed at 40% with no tax credits.
- You forgot to register the new job in myAccount — same as (2).
The fix: give the employer your PPS number and register the employment where Revenue requires it. Once a cumulative RPN is available, payroll may refund an over-deduction through a later payslip. If the RPN is issued on a week-one basis, or the employment has ended, a separate Revenue review or refund claim may be needed. A refund is therefore not guaranteed in the very next payslip.
Source: Revenue’s emergency tax guidance.
Tax in your first year in Ireland
A few things specific to newcomers:
Residency rule. You’re normally tax-resident in Ireland for a year if you spend 183 days or more in that year, or 280 days across that year and the previous year combined, subject to the minimum-presence rule for each year in the two-year test. A non-resident can still owe Irish tax on Irish employment, rental and other Irish-source income or gains. Residence, ordinary residence, domicile, treaty residence and available exemptions all affect the final position.
Split-year treatment. A person who is resident in the arrival year and expects to be resident in the following year can apply for split-year treatment for qualifying employment income. It is not a general split of tax residence and does not shelter rental, investment or every other category of foreign income.
Year-of-arrival credits. Full personal credits may be available where you are Irish-resident, but non-residents can face proportionate-credit or income-condition rules. Do not assume that a November arrival automatically produces a refund.
Foreign tax credits. A double-taxation agreement or unilateral relief may allow credit where the same income is taxed twice, but the taxing right, credit limit and income classification vary. See Revenue’s double-taxation agreements.
Your home-country pension. A foreign workplace or private pension can usually remain in its original scheme, but Ireland may tax payments once you are Irish-resident. The applicable treaty, pension type and local wrapper matter; an ISA, 401(k), pension and State pension should not be treated as equivalent. Transfers into an Irish arrangement are conditional, so take cross-border advice before moving or drawing funds.
Source: Revenue’s residence and ordinary residence guidance.
Self-employed and sole trader tax
Chargeable persons use self-assessment. This includes many sole traders, but not every person with a small amount of non-PAYE income. The usual rhythm is:
- Tax year: 1 January to 31 December (same as PAYE).
- Statutory file and pay date: 31 October. Revenue may announce a conditional ROS extension each year; do not assume it is always 14 November.
- Form 11 is the return for chargeable persons. PAYE taxpayers below the relevant non-PAYE thresholds may instead use a Form 12 process through myAccount.
- Preliminary tax is normally due with the prior-year balance. To avoid interest, it generally must be at least 90% of the current-year liability, 100% of the previous year’s liability, or—where qualifying direct-debit rules are met—105% of the pre-preceding year’s liability.
The Earned Income Tax Credit (€2,000) replaces the PAYE Tax Credit for sole traders — same amount, different name. If you have both PAYE income and self-employed income, you can claim only one of the two credits, not both.
Class S PRSI is 4.2% through 30 September 2026 and 4.35% from 1 October, with a €650 minimum annual contribution where Class S liability applies. For a full 2026 year spanning both periods, the blended rate is 4.2375%. No employer PRSI applies to the same self-employed income.
USC surcharge: self-employed income above €100,000 pays an extra 3% USC, bringing the top USC rate to 11% on that slice.
A full self-employed guide is on the backlog; for now Revenue’s self-employed page is the canonical source.
Tax on savings and investments
| Income type | Tax | Notes |
|---|---|---|
| Deposit interest (Irish bank or credit-union accounts) | 33% DIRT | Usually deducted at source; separate exemptions and reporting rules can apply |
| Prize Bonds | Exempt | Prize Bond prizes are exempt from Income Tax, DIRT and CGT |
| Capital gains (shares, property other than principal residence, crypto) | 33% CGT | First €1,270 of gains per year exempt; pay-and-file dates split across the year |
| Dividends (Irish or foreign shares) | Marginal income tax rate + USC + PRSI | Foreign dividends often have withholding tax; claim back via double-taxation treaty |
| Irish/equivalent offshore investment funds within the gross-roll-up regime | 38% exit tax from 1 January 2026; deemed disposal can apply every 8 years | Classification is product- and domicile-specific; not every ETF is taxed this way |
Fund classification is the trap, not the letters “ETF”. Irish and certain equivalent offshore funds can fall within the gross-roll-up regime, including an eight-year deemed disposal and 38% individual rate from 1 January 2026. Other exchange-traded products may instead fall under Income Tax and CGT rules. Domicile, legal structure and regulatory status matter. Foreign wrappers such as an ISA do not automatically retain their home-country exemption in Ireland, while pension treatment is separate. Get product-specific advice before selling or continuing to hold a foreign fund.
Source: Revenue’s DIRT page, Revenue’s CGT page, Revenue’s investment funds guidance.
When you leave Ireland
If you leave Ireland part-way through a tax year:
- You may request a PAYE review or repayment where too much tax was deducted; departure does not mean that most people automatically receive a refund.
- Split-year treatment on departure is conditional and applies to qualifying employment income. Irish-source income can remain taxable after departure.
- Occupational and personal pension funds may remain in Ireland. A cross-border transfer is possible only where both schemes and Revenue rules permit it.
- Irish PRSI contributions remain on your record, but a future State Pension depends on satisfying the contribution conditions. International coordination may produce separate proportional payments rather than an automatic Irish pro-rata pension.
Source: Revenue’s leaving Ireland guidance.
Verification
- Plain-English overview: Citizens Information on tax in Ireland — the trusted Irish-government plain-language summary.
- Income tax bands and credits (2026): Revenue.ie — tax rates, bands and relief charts.
- USC rates and bands: Revenue.ie — Universal Social Charge.
- Class A PRSI rates: Department of Social Protection — Class A rates.
- Class S PRSI rates: Department of Social Protection — Class S rates.
- State Pension contribution rules and rates: Department of Social Protection — State Pension (Contributory).
- Rent Tax Credit: Revenue.ie — Rent Tax Credit.
- Joint assessment for married couples: Revenue.ie — Marriage and civil partnership.
- Emergency tax mechanics: Revenue.ie — Emergency tax.
- Residence and split-year treatment: Revenue.ie — Tax residence.
- Self-employment (Form 11, preliminary tax, Class S PRSI): Revenue.ie — Self-assessment and self-employment.
- DIRT, CGT and investment fund exit tax: Revenue.ie — Savings and investments.
- Pension contribution relief: Revenue.ie — tax-relief limits.
Page last fact-checked 20 July 2026. Scheduled October 2026 PRSI increases are labelled with their effective dates; future Budgets may change later years.
For related decisions: salary expectations in Ireland, PPS number, renting in Ireland, bank accounts, moving from the UK, moving from the USA.