Income Taxes in Ireland: Decoding the Irish PAYE System

If you work in Ireland, your employer probably handles your taxes through PAYE—Pay As You Earn. But understanding how much actually reaches your pocket helps with budgeting and planning. Here’s a straightforward guide to Irish income tax.

The Three Taxes on Employment Income

Ireland levies three main taxes on workers:

1. Income Tax
2. Universal Social Charge (USC)
3. Pay Related Social Insurance (PRSI)

Income Tax

Irish income tax uses two rates:

• 20% on the first €42,000 of taxable income (standard rate)
• 40% on income above that (higher rate)

Thresholds can change for married couples and those with dependents.

Universal Social Charge (USC)

USC applies if you earn over €13,000. Rates range from 0.5% to 8% depending on your income band. Reduced rates apply for some groups (e.g. over-70s and medical card holders on lower incomes).

• €0–€12,012: 0.5%
• €12,013–€25,760: 2%
• €25,761–€70,044: 4%
• €70,045+: 8%

PRSI

PRSI funds social welfare and pensions. If you earn over €352 per week, you generally pay 4% on your income. There are credits and adjustments for lower earners.

Emergency Tax

If you start a new job and don’t provide your PPS number or register with Revenue, you may be put on emergency tax—often 40% on all income. Fix this quickly by giving your employer your PPS and ensuring your job is registered with Revenue.

Example: €47,934 Salary

For a single person with no dependents earning the Irish average of €47,934:

• Income tax: about €7,024 per year
• USC: about €1,222
• PRSI: about €1,929
• Total tax: ~€10,175
• Take-home pay: ~€3,147 per month

Use our Ireland salary calculator to get a precise estimate for your situation.