How is my take-home pay calculated?
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Your gross income is subject to three deductions: income tax (PAYE), the Universal Social
Charge (USC), and Pay Related Social Insurance (PRSI). PAYE is calculated first using your
standard rate cut-off point and marginal rate, then reduced by your tax credits. USC is
calculated on gross income in bands with no credits. PRSI is calculated on gross weekly
earnings at a flat rate with a weekly exemption and credit zone for lower earners. The sum
of all three deductions subtracted from gross gives your net take-home pay.
What is the standard rate cut-off for a single person in 2026?
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For a single PAYE employee in 2026, the standard rate cut-off is €44,000. Income up to
this amount is taxed at 20%; income above it is taxed at 40%. Married one-income couples
have a cut-off of €53,000. Married two-income couples can have up to €88,000 (€53,000
plus up to €35,000 for the second earner). Single parents and widowed persons with
dependent children have a cut-off of €48,000.
What tax credits does every PAYE employee receive automatically?
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Every PAYE employee in Ireland automatically receives two credits in 2026: the Personal
Tax Credit (€2,000 for a single person, €4,000 for a married couple) and the Employee
(PAYE) Credit (€2,000). Together, a single PAYE worker has €4,000 in credits that
directly reduce income tax payable, meaning the first approximately €20,000 of income
is effectively tax-free. Additional credits are available depending on your circumstances.
How does PRSI work and what rate do I pay?
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Most PAYE employees pay Class A PRSI at 4.20% on gross weekly earnings from January to
September 2026, rising to 4.35% from 1 October 2026. If you earn less than €352 per week
(approximately €18,304 per year), you are fully exempt. For earnings between €352.01 and
€424 per week, a tapered PRSI credit reduces your contribution, up to a maximum of €12 per week
at the lower end, reducing to zero at €424. Employees aged 70 or over are exempt from
PRSI entirely.
Can I reduce my tax with a pension contribution?
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Yes. Contributions to an approved pension scheme or PRSA are deductible from income for
PAYE purposes, meaning you receive income tax relief at your marginal rate (20% or 40%).
The maximum percentage of earnings eligible for relief increases with age: 15% under 30,
up to 40% at age 60 or over. Pension contributions do not reduce USC or PRSI. Use the
pension field in the calculator to see exactly how much your contribution saves.
What is the Rent Tax Credit and who qualifies?
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The Rent Tax Credit is available to private tenants renting their principal private
residence in Ireland. For 2026 it is worth €1,000 for a single person or €2,000 for a
jointly assessed married couple. The property must be registered with the Residential
Tenancies Board (RTB). Tenants receiving the Housing Assistance Payment (HAP) or the
Rental Accommodation Scheme (RAS) are not eligible. The credit is claimed through Revenue's
myAccount service.
How does the married tax band and joint assessment work?
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Married couples and civil partners assessed jointly receive the higher Personal Credit
of €4,000 (versus €2,000 for a single person) and a higher standard rate cut-off point.
Any unused standard rate band or credits from one spouse can transfer to the higher earner.
This makes joint assessment particularly beneficial when incomes are unequal. For a
two-income couple, the second earner can use up to €35,000 of additional standard rate
band, capped at the second earner's own income.
Does my employer pay PRSI separately on my salary?
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Yes. Employer PRSI is paid by your employer in addition to your salary; it is not
deducted from your pay, but it represents a significant additional cost of employment.
In 2026 the rate is 9.00% for employees earning up to €552 per week, and 11.25% for
those earning above that threshold. Both rates increase by 0.15% from October 2026.
The calculator shows the employer PRSI cost alongside your take-home pay figures.
What is the Small Benefit Exemption?
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The Small Benefit Exemption allows employers to give employees up to €1,500 per year in
non-cash benefits such as gift cards or vouchers, completely free of PAYE, USC, and
PRSI. This applies to up to five qualifying benefits per tax year, with a combined
maximum of €1,500. Common examples include Christmas bonuses given in voucher form. Any
non-cash benefit above €1,500 in total is taxable in the normal way.