How income tax works in Ireland
Irish tax residents are generally taxed on worldwide income. Non-residents are taxed on Irish-source income. Employment income is usually collected through PAYE, while self-employed people and many investors self-assess.
Income tax uses two main rates: 20% up to the standard-rate cut-off and 40% above it. For 2026, the common single-person standard-rate band is about EUR 44,000, with higher bands for one-parent and married or civil-partner households.
USC and PRSI sit on top. USC is charged on gross income in bands from 0.5% to 8%, with a higher 11% band for certain self-assessed income over EUR 100,000. Employee PRSI is generally 4.2% for most of 2026 and 4.35% from 1 October 2026.
Income tax brackets in Ireland
| Bracket | Rate | Notes |
|---|---|---|
| Up to EUR 44,000 | 20% | Common single-person 2026 standard-rate cut-off; household bands can be higher. |
| Above EUR 44,000 | 40% | Applies to income above the common single-person cut-off. |
| USC on first EUR 12,012 | 0.5% | |
| USC next band to about EUR 28,700 | 2% | |
| USC next band to about EUR 70,044 | 3% | |
| USC above about EUR 70,044 | 8% |
Tax rates at a glance
- Standard rate
- 20%2026
- Higher rate
- 40%
- Single standard-rate cut-off
- About EUR 44,000
- USC bands
- 0.5% / 2% / 3% / 8%
- Employee PRSI
- 4.2% then 4.35%
- Employer PRSI
- About 9% / 11.25%+
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsFoundersContractorsHigh earners
Watch out for
- Always model income tax, USC and PRSI together. Looking only at 20% or 40% understates the real payroll burden.
- Standard-rate cut-offs differ for single people, one-parent families and married or civil-partner couples with one or two incomes.
- Self-employed people can face the additional USC surcharge on income over EUR 100,000 and different PRSI treatment.
- Tax credits such as the personal credit and employee credit reduce the bill, so the marginal rate and the effective rate are not the same.
Frequently asked questions
What is the top income tax rate in Ireland?
The higher income-tax rate is 40%. USC of 8% and PRSI of roughly 4.2% to 4.35% usually sit on top for employees, and some self-employed earners can face a higher USC band.
Do expats pay Irish income tax?
Yes if they are Irish tax resident or have Irish-source income. Residence, domicile and treaty position decide whether worldwide income is fully in scope.
Is salary taxed differently from investment income?
Employment income is usually collected through PAYE with USC and PRSI. Dividends, rental income and capital gains often follow different rules, rates and filing mechanics.