00. System Changes (Budget 2026)
[+]
USC 2% Ceiling Raised
[ UPDATE ]
Upper limit increased from €27,382 → €28,700 to protect minimum wage workers from the 3% band.
[+]
Minimum Wage Increased
[ UPDATE ]
Increased by 0.65c to €14.15 per hour.
[+]
Employee & Employer PRSI
[ OCT ]
Rates rise by 0.15% effective 1 October 2026. Employer threshold increased to €552.
01. Income Tax (PAYE) Bands
Standard Rate Cut-Off Points
Single Person
€44,000
Single Person (Child Carer)
€48,000
Married / One Income
€53,000
Married / Two Incomes
Max transfer capped at €35,000
02. Universal Social Charge (USC)
Standard Bands
First €12,012[ 0.5% ]
€12,012.01 – €28,700[ 2.0% ]
€28,700.01 – €70,044[ 3.0% ]
Above €70,044[ 8.0% ]
Reduced Max Rate
[ 2.0% ]
Age 70+ or Medical Card (Income ≤ €60k)
First €12,012 at 0.5%, balance at 2.0%
03. Pay Related Social Insurance (PRSI)
Employee Rates (Class A)
Jan 01 — Sep 30
[ 4.20% ]
Oct 01 — Dec 31
[ 4.35% ]
Employer Rates (Class A)
Weekly EarningsJan-SepOct-Dec
≤ €552 (Low)
[ 9.00% ]
[ 9.15% ]
> €552 (High)
[ 11.25% ]
[ 11.40% ]
TAX CREDITS: These reduce the actual amount of tax you pay.
TAX RELIEFS: These reduce the amount of income that you pay tax on.
Personal Circumstances
Single Person€2,000
Married / Civil Partner€4,000
Widowed (with children)€2,000
Widowed (no children)€2,540
Widowed Bereavement Year
€4,000
Widowed Parent (Year 1)
€3,600
Widowed Parent (Year 2)
€3,150
Widowed Parent (Year 3)
€2,270
Widowed Parent (Year 4)
€2,250
Widowed Parent (Year 5)
€1,800
Age Tax Credit (65+) Single€245
Age Tax Credit (65+) Married€490
Employment & Family
Employee (PAYE) Credit€2,000
Home Carer's Tax Credit (Max)€1,950
Single Person Child Carer€1,900
Dependent Relative
No credit if relative's income exceeds €18,548. Includes all income sources: social welfare, pensions, and deposit interest.
€305
Housing, Medical & Disability
Employed Carer for Incapacitated
Tax relief reducing taxable income
Rent Tax Credit (Single)
€1,000
Rent Tax Credit (Jointly Assessed)
€2,000
Mortgage Interest Tax Credit
Max €1,250
Incapacitated Child Credit
€3,800
Blind (Single / One Spouse)
€1,950
Blind (Both Spouses)
€3,900
Employer Benefits & Allowances
Health Insurance (BIK) Relief
Where an employer pays medical insurance on behalf of an employee, it is treated as a Benefit-in-Kind (BIK) and tax is due on the total amount. Tax relief is given at the standard rate of 20%. The cap is a maximum of €1,000 per adult and €500 per child.
Max €200 (Adult)
Max €100 (Child)
Other Benefit-in-Kind (BIK)
Value of other employer-provided benefits is added to taxable income and subject to PAYE, USC, and PRSI.
Taxable
Small Benefit Exemption (Non-Taxable)
Employers can provide up to five non-cash benefits, tax-free, each year. The combined value cannot exceed €1,500. Qualifying benefits are exempt from PAYE income tax, Universal Social Charge (USC), and PRSI. The benefit must not be convertible to cash.
Max €1,500