Ireland Personal Income Tax Guide (IIT)

Ireland's Income Tax (IIT) applies a two-rate structure — 20% on the first €42,000 of taxable income for a single person and 40% on income above that threshold. Personal tax credits of €1,875, a PAYE credit of €1,875, and an earned income credit of €1,875 for the self-employed reduce the net tax burden. Marginal relief may apply in limited circumstances. All amounts in EUR.

Ireland's Income Tax (IIT) is administered by the Office of the Revenue Commissioners (Revenue). The system is individual-based and operates on a pay-as-you-earn (PAYE) basis for employees and self-assessment for the self-employed. For related guidance, see our Corporate Tax Guide →, VAT Guide →, and Capital Gains Guide →.

Income Tax Brackets 2026

Ireland uses a two-rate progressive system. The standard rate band depends on marital and civil partnership status:

20% (Standard Rate) — on the first €42,000 of taxable income for a single person
40% (Higher Rate) — on taxable income above €42,000 for a single person
Married/Civil Partnership (one earner): 20% on first €51,000, then 40%
Married/Civil Partnership (two earners): 20% on first €42,000 each, then 40% (with potential transfer of unused band up to €30,000)
Single parent: 20% on first €46,000, then 40%

Personal Tax Credits 2026

Tax credits directly reduce the amount of tax payable (not taxable income). Key credits include:

Personal tax credit: €1,875 per year for a single person (€3,750 for married couples)
PAYE credit: €1,875 for employees (reduces tax on employment income)
Earned income credit: €1,875 for self-employed individuals (equivalent to the PAYE credit)
Home carer credit: Up to €1,800 for married couples where one spouse cares for a dependent
Single parent child carer credit: €1,650
Age credit: €245 (single, aged 65+) or €490 (married, both 65+)

Universal Social Charge (USC)

The USC is a separate tax on gross income before credits, calculated on a progressive scale:

0.5% — on the first €12,012 per year
2% — on income from €12,013 to €22,920
4% — on income from €22,921 to €70,044
8% — on income above €70,044
Reduced rates apply to medical card holders and those aged 70+

Self-employed individuals earning over €100,000 pay an additional 3% surcharge on their USC (top rate effectively 11%).

Pay Related Social Insurance (PRSI)

Standard PRSI rate: 4% on all earnings (employee contribution)
Employer PRSI: 8.8% to 11.05% depending on weekly earnings
Threshold: No PRSI on weekly earnings below €352 (class A)
PRSI applies to gross income and entitles contributors to social welfare benefits

Marginal Relief

Marginal relief limits the total tax payable (income tax + USC + PRSI) to a maximum percentage of gross income
It is generally relevant only for individuals with income just above the standard rate band threshold
In practice, the combined marginal rate on income above €42,000 can reach approximately 52% (40% income tax + 8% USC + 4% PRSI) for high earners

Filing & Compliance

PAYE employees: Most tax is deducted at source through the PAYE system. The Revenue Payroll Notification (RPN) tells employers your tax credits and rate band.
Self-employed: File an annual Form 11 return via Revenue's Online Service (ROS) by 31 October following the tax year (or 31 December if filing online with preliminary tax paid).
Pay and File: Preliminary tax must be paid by 31 October for self-assessment filers.
Tax year: Runs from 1 January to 31 December.