Money
How income tax, USC and PRSI work in Ireland
In Ireland you pay income tax with credits taken off, plus two separate social charges.
Irish employees pay income tax through PAYE, and also the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). Income tax has two rates. Tax credits are taken off the tax you owe, not off your income.
2026 income tax and credits (single person)
| Item | 2026 |
|---|---|
| Standard rate band | €44,000 at 20% |
| Higher rate | 40% on the balance |
| Personal tax credit | €2,000 |
| Employee (PAYE) tax credit | €2,000 |
💡 Pro Tip: Revenue's Budget 2026 summary says there are no changes to the rates and bands for 2026. Rates for married couples and single parents differ. Check Revenue for your own situation.
USC and PRSI
| Charge | How it works |
|---|---|
| USC | 0.5% to €12,012, 2% to €28,700, 3% to €70,044, 8% above. Not charged if total income is €13,000 or less. |
| PRSI | Employee rate 4.35% from 1 October 2026 (4.2% earlier in 2026). Nothing on weekly earnings of €352 or less. |
Worked example: €50,000
1
Income tax
20% of €44,000 is €8,800 and 40% of €6,000 is €2,400, a total of €11,200.
2
Subtract credits
€11,200 − €4,000 of credits = €7,200.
3
USC and PRSI
USC is €1,032.82 and PRSI is €2,175.
4
Take-home pay
€50,000 − €7,200 − €1,032.82 − €2,175 = €39,592.18, about €3,299 a month.
✨ Key Takeaways
- Tax credits reduce the tax, not the income.
- USC and PRSI are separate from income tax.
- PRSI rose to 4.35% on 1 October 2026.
- Check Revenue for the current year's figures.