Taxes in Ireland
Ireland has a comprehensive tax system with income tax, Universal Social Charge (USC), and Pay Related Social Insurance (PRSI). New residents are taxed on worldwide income from day one.
Tax Residency
You're tax resident if you:
- Spend 183+ days in Ireland in a tax year, OR
- Spend 280+ days over two consecutive years (with 30+ days each year)
Tax residents pay Irish tax on worldwide income.
Non-residents pay only on Irish-source income.
Income Tax Rates 2026
| Income (Single) | Rate |
|---|---|
| First €44,000 | 20% (standard rate) |
| Above €44,000 | 40% (higher rate) |
Married couples (one income): €53,000 at 20%, balance at 40%
Married couples (two incomes): Can split standard band up to €88,000 combined
Universal Social Charge (USC) 2026
| Income | Rate |
|---|---|
| First €12,012 | 0.5% |
| €12,013 - €28,700 | 2% |
| €28,701 - €70,044 | 4% |
| Above €70,044 | 8% |
Medical card holders and those earning under €13,000 are exempt.
PRSI (Social Insurance) 2026
- Employees: 4.35% (from October 2026, up from 4.2%)
- Employers: 11.15%
- Funds pensions, maternity benefits, jobseeker's allowance
Example: €70,000 Salary
| Tax | Amount |
|---|---|
| Income Tax | €19,000 |
| USC | €2,800 |
| PRSI | €3,050 |
| Total Tax | €24,850 |
| Net Pay | €45,150 |
Effective tax rate: ~35.5%
Tax Credits 2026
Credits reduce your tax bill:
- Personal Tax Credit: €2,000
- PAYE Credit: €2,000 (employees)
- Earned Income Credit: €2,000 (self-employed)
- Home Carer Credit: €1,950
- Rent Tax Credit: €1,000 (singles), €2,000 (couples)
For Expats
No honeymoon period: Unlike some countries, Ireland taxes residents on worldwide income from arrival.
Double Taxation Treaties: Ireland has 70+ treaties to prevent double taxation. Check if your home country has one.
SARP (Special Assignee Relief Programme):
- For employees assigned to Ireland by foreign employer
- 30% of income over €100,000 exempt from income tax
- Must earn €100,000+ and come from country with tax treaty
- Complex conditions - get professional advice
Foreign Employment Income:
- Generally taxable in Ireland as a resident
- May get credit for foreign taxes paid
Filing and Deadlines
- Tax year: January 1 - December 31
- PAYE employees: Tax deducted at source, usually no filing required
- Self-employed: File by October 31 (paper) or November mid (online)
- Form 11: Annual self-assessment return
Capital Gains Tax
- Rate: 33%
- Annual exemption: €1,270
- Applies to disposal of assets including property and investments
Professional Help
For complex situations (SARP, foreign income, dual residency):
- Irish Tax Institute: find a qualified tax advisor
- Revenue.ie: official guidance and online services
- Cost: €200-500 for basic tax return, €1,000+ for complex cases
Pro Tips
- •No tax holiday - you're taxed on worldwide income as a resident from day one
- •SARP relief can save significant tax if you qualify - check eligibility
- •Rent Tax Credit worth €1,000-2,000/year - claim if you're renting
- •Check double taxation treaties with your home country
- •PAYE employees usually don't need to file - tax is handled by employer
Have questions about taxes in Ireland?