Taxes in Ireland for employees - PAYE, USC, PRSI, tax credits and myAccount

Income tax is charged at 20% up to a rate band and 40% on the rest. For 2026:

• Single person: €44,000 at 20%, the balance at 40%.
• Single parent qualifying for the Single Person Child Carer Credit: €48,000 at 20%.
• Married couple or civil partners, one income: €53,000 at 20%.
• Married couple or civil partners, two incomes: €53,000 at 20%, increased by the lower of €35,000 or the lower earner's income.

Tax credits are then subtracted from the tax calculated. The main 2026 credits are the personal tax credit (€2,000 single, €4,000 married or civil partners) and the employee (PAYE) tax credit (€2,000).

USC is a separate tax on gross income. If your total income is €13,000 or less a year, you pay no USC; above that, you pay it on all your income. Standard 2026 rates:

• first €12,012 at 0.5%
• next €16,688 at 2%
• next €41,344 at 3%
• the balance at 8%

Reduced rates apply to some people aged 70 or over and to medical card holders with income of €60,000 or less.

Most employees pay Class A PRSI. If you earn more than €352 a week, you pay PRSI on all your earnings: 4.35% from 1 October 2026 (4.2% up to 30 September 2026). A small tapered credit reduces PRSI for weekly earnings between €352.01 and €424. If you earn €352 or less a week, you pay no PRSI. PRSI goes into the Social Insurance Fund, which pays social welfare benefits and pensions; your contribution record decides whether you qualify for some of them, such as Illness Benefit.

You are tax resident in Ireland for a year if you are here for 183 days or more in that tax year, or 280 days or more across that year and the previous year together (but never if you are here 30 days or less in the year). Any part of a day counts as a day. Residents who are also domiciled here pay Irish tax on their worldwide income, subject to double taxation agreements.

In the year you arrive, you can choose to be tax resident if you intend to be resident the following year; you must tell Revenue in writing. You can also claim split-year treatment in your year of arrival. Both affect which credits you get, so check them if you arrive mid-year.

If you rent your home privately, you may be able to claim the Rent Tax Credit, available for the tax years 2022 to 2028. For 2024 to 2028 it is worth up to €1,000 a year for a single person and €2,000 for a jointly assessed couple. It only reduces tax you actually pay, and conditions apply to the property, the tenancy type and your relationship with the landlord. You claim it in myAccount.

After the year ends, review your tax in myAccount and claim any credits you missed; the Rent Tax Credit, for example, is claimed on the Income Tax Return in myAccount. If you have other income besides your salary, or you work in Ireland for an employer based abroad, check with Revenue or a tax adviser how PAYE, PRSI and any filing obligations apply to you.