How is income tax calculated in Ireland?
Ireland taxes the calendar year. Income up to the standard rate band (€44,000 for a single person in 2026) is taxed at 20% and the rest at 40%; then tax credits — €2,000 personal and €2,000 PAYE for a single employee — come off the tax itself. The Universal Social Charge is charged separately on gross income, and PRSI is deducted from pay.
What is the income tax rate in Ireland?
| Taxable income | Rate |
|---|---|
| €0 – €44,000 | 20% |
| Over €44,000 | 40% |
| Taxable income | Rate |
|---|---|
| €0 – €12,012 | 0.5% |
| €12,012 – €28,700 | 2% |
| €28,700 – €70,044 | 3% |
| Over €70,044 | 8% |
What mandatory salary deductions apply?
- USC: 0.5% on the first €12,012, 2% to €28,700, 3% to €70,044 and 8% above.
- PRSI Class A: 4.2% of all earnings for weeks over €352 until 30 September 2026, then 4.35% from 1 October, with a small tapered credit between €352 and €424 a week.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: €4,583.33 a month
A single employee in Dublin on €55,000 a year.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | €4,583.33 | €55,000.00 |
| Income tax | €865.24 | €10,382.82 |
| Compulsory contributions | €194.21 | €2,330.51 |
| Take-home pay | €3,523.89 | €42,286.67 |
Effective income tax rate 18.9%; all deductions 23.1%.
How can employees legally reduce their taxes?
- Pension contributions get relief at your marginal rate, within age-related limits.
- Credits such as the rent tax credit and medical expenses relief come off the tax.
Frequently asked questions
What is the difference between a tax band and a tax credit?
The band decides how much income is taxed at 20% rather than 40%. Credits are subtracted from the tax once it is worked out.
Did PRSI change in 2026?
Yes. Class A employee PRSI rose from 4.2% to 4.35% on 1 October 2026; this calculator uses 4.2% for the first 39 weeks and 4.35% for the last 13.
Does everyone pay USC?
No. If your total income is €13,000 or less you pay none.
Official sources
- Revenue: Tax rates, bands and reliefs (2026). Read 5 November 2026.
- Revenue: Standard rates and thresholds of USC (2026). Read 5 November 2026.
- Citizens Information Board: Paying social insurance (PRSI): rates and credit for 2026. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 5 August 2026): Ireland: Class S PRSI, USC surcharge on self-employed income, earned income credit. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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