Irish Tax Rates & Bands
Budget 2026
Current rates, thresholds, tax credits, and reliefs for PAYE workers. Calculate your take-home pay →
This page lists every tax rate, band, credit, and relief that applies to Irish PAYE employees for the 2026 tax year, as updated by Budget 2026 (announced October 2025). The Rates & Bands tab covers income tax cut-off points, USC thresholds, PRSI rates, pension relief limits, and a full summary of what changed versus 2025. The Tax Credits & Reliefs tab lists every credit available to PAYE employees with amounts and eligibility notes.
All figures are sourced from Revenue.ie and the Finance Act 2025. To see how these rates apply to your specific salary and circumstances, use the take-home pay calculator. For a plain-language explanation of how each tax is calculated, see our PAYE guide and tax credits guide.
00. System Changes (Budget 2026)
Income Tax Rate Bands — No Change [ BAND ]
Standard rate cut-off points held at 2025 levels — €44,000 (single), €53,000 (married / one income), €48,000 (one parent / widowed with children). As bands were not indexed, wage increases in 2026 can push more income into the 40% band (fiscal drag).
Tax Credits — No Change [ CREDIT ]
Personal, Employee (PAYE), Home Carer, Single Person Child Carer and the other tax credits were all maintained at their 2025 amounts — €2,000 personal and €2,000 PAYE for a single worker (€4,000 combined). No credit was increased in Budget 2026.
USC 2% Ceiling Raised [ USC ]
Upper limit of the 2% USC band increased €27,382 → €28,700, keeping full-time minimum wage workers within the 2% band as the hourly rate rises. USC rates themselves are unchanged.
Employee PRSI — October Increase [ PRSI ]
Class A employee rate rises 4.20% → 4.35% from 1 October 2026 (it had already moved to 4.20% on 1 October 2025, so there is no January change). Part of the multi-year roadmap to fund long-term pension sustainability.
Employer PRSI — October Increase [ PRSI ]
Class A employer rates rise from 1 October 2026: low rate (≤ €552/wk) 9.00% → 9.15%; high rate (> €552/wk) 11.25% → 11.40%. The weekly threshold for the higher rate is €552.
Minimum Wage Increased [ WAGE ]
National minimum wage rises €0.65 to €14.15 per hour from 1 January 2026. The USC 2% ceiling increase above is calibrated to keep full-time minimum wage workers out of the higher USC band.
01. Income Tax (PAYE) Bands
Standard Rate
[ 20% ]
Higher Rate
[ 40% ]
Standard Rate Cut-Off Points
| Single Person | €44,000 |
|---|---|
| Single Person (Child Carer) / One Parent | €48,000 |
| Married / One Income | €53,000 |
| Married / Two Incomes Max transfer capped at €35,000 | Max €88,000 |
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% ] |
Exemption Limit
€13,000
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 Earnings | Jan-Sep | Oct-Dec |
|---|---|---|
| ≤ €552 (Low Rate) | [ 9.00% ] | [ 9.15% ] |
| > €552 (High Rate) | [ 11.25% ] | [ 11.40% ] |
Employee Exemptions & Thresholds
| Weekly earnings ≤ €352 | Exempt |
|---|---|
| Weekly earnings €352.01 – €424 PRSI Credit zone — credit reduces weekly liability proportionally from €12 at €352 to €0 at €424. | Reduced |
| Age 70 and over Employees aged 70+ are fully exempt from employee PRSI (Revenue Class J, employer pays 0.5%). Changed from age 66 effective 1 January 2024 (Social Welfare Act 2023). | Exempt (Class J) |
| Ages 66–69 with State Pension (Contributory) awarded Once Revenue issues the State Pension (Contributory), employee PRSI becomes Class J (nil employee, 0.5% employer). Without the pension award, ages 66–69 continue paying standard PRSI. Pre-2024 exception: those who were already 66 before 1 January 2024 (born before 1 January 1958) remain exempt. | Exempt (Class J) |
04. Income Tax Exemption — Age 65+
Under Revenue s.188 TCA 1997, individuals aged 65 or over may be fully exempt from income tax if their income is at or below the exemption limit. Where income exceeds the limit but is below twice the limit, marginal relief may apply — paying 40% of the excess over the limit instead, and only if that amount is lower than normal tax after credits.
Exemption Limits
| Single / Widowed | €18,000 |
|---|---|
| Married / Civil Partnership (at least one aged 65+) | €36,000 |
Children Additions to Exemption Limit
| First and second qualifying child | +€575 each |
|---|---|
| Third and each subsequent child | +€830 each |
Marginal Relief & Age Tax Credits
| Marginal Relief Rate Only applied when income is between the exemption limit and twice the limit, and only if the resulting tax is lower than normal tax after credits. No credits are deducted in the marginal relief calculation itself. | 40% of excess |
|---|---|
| Age Tax Credit (65+) — Single Applied in the normal tax calculation. Not relevant when full exemption applies. | €245 |
| Age Tax Credit (65+) — Married / Civil Partnership Available where at least one spouse is aged 65 or over. Irrelevant when the full income tax exemption applies. | €490 |
Personal Circumstances
| Single Person Automatic for all PAYE workers. Combined with the Employee (PAYE) Credit (€2,000), total core tax reduction is €4,000. | €2,000 |
|---|---|
| Married / Civil Partner Jointly assessed couples receive twice the single personal credit. Unused credit can transfer between spouses to maximise the household benefit. | €4,000 |
| Widowed (with children) Single Person Child Carer Credit (€1,900) is automatically applied — widowed parents are the sole claimant by definition. | €2,000 |
| Widowed (no children) Higher than the standard single credit (€2,540 vs €2,000) to partially compensate for the loss of the coupled personal credit, where no dependent children are present and therefore no SPCCC applies. | €2,540 |
| Widowed Bereavement Year Additional credit in year of bereavement. The full year is treated as married, so the married personal credit (€4,000) also applies. Total personal credits = €8,000 (plus PAYE credit €2,000 = €10,000). | +€4,000 |
| Widowed Parent (Year 1) Decreasing special credit over 5 years post-bereavement, on top of personal credit (€2,000) and Single Person Child Carer Credit (€1,900) — both also automatically applied. | +€3,600 |
| Widowed Parent (Year 2) Year 2 of 5. Decreases by €450 each year. Personal credit (€2,000) and SPCCC (€1,900) remain automatically in place throughout all 5 years. | +€3,150 |
| Widowed Parent (Year 3) Year 3 of 5. Decreases by €450 each year. Personal credit (€2,000) and SPCCC (€1,900) remain automatically in place throughout all 5 years. | +€2,700 |
| Widowed Parent (Year 4) Year 4 of 5. Decreases by €450 each year. Personal credit (€2,000) and SPCCC (€1,900) remain automatically in place throughout all 5 years. | +€2,250 |
| Widowed Parent (Year 5) Final year of the special widowed parent credit. After Year 5, only the personal credit (€2,000) and SPCCC (€1,900) continue. | +€1,800 |
| Age Tax Credit (65+) — Single Applied in the normal tax calculation. Income tax exemption (s.188 TCA 1997) may eliminate tax entirely for low incomes — see Rates & Bands tab. | €245 |
| Age Tax Credit (65+) — Married / Civil Partnership Available where at least one spouse is aged 65 or over. Where the income tax exemption (s.188 TCA 1997) fully eliminates tax, this credit becomes irrelevant. | €490 |
Employment & Family
| Employee (PAYE) Credit Automatic for all PAYE employees. Scaled at 20% of PAYE income — the full €2,000 applies once PAYE income reaches €10,000. Does not apply to self-employed income. | €2,000 |
|---|---|
| Flat Rate Expense Revenue-approved fixed deduction for employees in qualifying occupations (e.g. nurses, doctors, tradespeople). Reduces taxable income for income tax purposes at marginal rate. Does not reduce USC. Amount varies by occupation — from €25 (agricultural workers) to €733 (nurses/midwives). | €25 – €733 |
| Home Carer's Tax Credit (Max) Full €1,950 credit when home carer's income ≤ €7,200. Tapered by €1 for every €2 of income above €7,200. No credit when home carer's income ≥ €11,100. For two-income couples, the engine automatically selects whichever is more beneficial: this credit or the increased rate band. | €1,950 |
| Single Person Child Carer Requires checkbox confirmation for Single Parent (one_parent) status — the other parent may be the primary claimant. Automatically applied for Widowed (with children) and Widowed Parent (Year 1–5) statuses, as there is no living co-parent who could claim it instead. | €1,900 |
| Dependent Relative Reduces if relative's income exceeds statutory parameters. | €305 |
Housing, Medical & Disability
| Employed Carer for Incapacitated Tax relief directly reducing taxable income base. | Max €75,000 |
|---|---|
| Approved Pension Contributions 15%–40% of earnings depending on age (max €115,000 earnings ceiling). See Pension Relief Limits table below. | Full Relief |
| Rent Tax Credit (Single) Available to private tenants for rent paid on their principal private residence. Not available where housing supports (HAP, RAS) are in place. Property must be registered with the RTB. | €1,000 |
| Rent Tax Credit (Jointly Assessed) Full couple's credit for jointly assessed married or civil partner couples renting privately. Each party's qualifying rent is counted up to the €2,000 combined maximum. | €2,000 |
| Mortgage Interest Tax Credit Temporary credit for homeowners whose qualifying mortgage interest exceeded their 2022 interest. Extended to 2026 but at a reduced level: relief on 50% of the increase at 20%, capped at €625 for 2026 (it was €1,250 for 2023–2025). Available where the mortgage was in place on 31 December 2022. | Max €625 |
| Incapacitated Child Credit Applies where the child has a permanent physical or mental incapacity preventing them from maintaining themselves. No upper age limit once the condition existed before age 21. One credit per qualifying child, claimable by either parent. | €3,800 |
| Blind (Single / One Spouse) Certified blindness or severe visual impairment qualifying under Revenue criteria. The Guide Dog Allowance (€165) is separate and may be claimed in addition. | €1,950 |
| Blind (Both Spouses) Where both spouses in a jointly assessed marriage are each separately certified as blind or severely visually impaired. Doubles the individual entitlement. | €3,900 |
| Guide Dog Allowance Net value of tax credit based on a €825 statutory allowance at 20%. | €165 |
Pension Contributions — Tax Relief Limits
Tax relief on personal pension contributions is granted at your marginal rate. The amount you can claim relief on is capped at an age-related percentage of your net relevant earnings, up to a maximum earnings ceiling of €115,000. Employer contributions to your scheme are not counted toward this limit.
| Age in Tax Year | Max % of Earnings | Max Relief (at €115k) |
|---|---|---|
| Under 30 | 15% | €17,250 |
| 30 – 39 | 20% | €23,000 |
| 40 – 49 | 25% | €28,750 |
| 50 – 54 | 30% | €34,500 |
| 55 – 59 | 35% | €40,250 |
| 60 and over | 40% | €46,000 |
Contributions above these limits do not attract relief in the current year. Unused relief cannot be carried forward. Relief is applied at source (occupational schemes) or claimed via your tax return (PRSA / RAC).
Employer Benefits & Allowances
| Health Insurance (BIK) Relief Tax credit given at standard rate (20%) on employer premiums up to capped amounts. | Max €200 (Adult) Max €100 (Child) |
|---|---|
| Other Benefit-in-Kind (BIK) Full notional value added to gross — subject to PAYE, USC, and PRSI with no offsetting credit (unlike health insurance BIK). Covers gym memberships, subsidised accommodation, staff discounts, free meals above the daily threshold, and similar employer benefits. Company car BIK involves a separate OMV/business-mileage calculation not modelled by this field. | Taxable |
| Small Benefit Exemption Up to five non-cash gifts/vouchers per year completely free of all statutory taxes. | Max €1,500 |
| Non-Taxable Allowances Bypasses calculation engine tax tracks entirely to bundle directly into net home pay. | Exempt |
Calculate Your Net Pay
Want to see exactly how these 2026 tax bands affect your specific salary? Use our free PAYE calculator to get your breakdown.
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