Irish Tax Rates & Bands
Budget 2027
The 2027 rates, thresholds, tax credits and reliefs for PAYE workers, which apply to pay from 1 January 2027, and what Budget 2027 changed from 2026. Calculate your take-home pay →
This page lists every tax rate, band, credit, and relief that applies to Irish PAYE employees for the 2027 tax year, as set by Budget 2027 (announced 6 October 2026). The Rates & Bands tab covers income tax cut-off points, USC thresholds, PRSI rates and a full summary of what changed versus 2026, with both years side by side and the change in take-home pay at each salary. The Tax Credits & Reliefs tab lists every credit available to PAYE employees with amounts and eligibility notes.
The 2027 figures are taken from the Department of Finance's Budget 2027 Tax Policy Changes, whose worked examples this site's engine reproduces to the euro. 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 2027)
Income Tax Rate Bands: Up €2,500 [ BAND ]
Every standard rate cut-off point rises by €2,500: €46,500 (single), €55,500 (married / one income), €50,500 (one parent / widowed with children). For a two-income couple the second earner's increase rises to €37,500, a maximum of €93,000.
Personal and Employee Credits: Up €125 [ CREDIT ]
Personal Tax Credit €2,125 single (€4,250 married) and Employee (PAYE) Credit €2,125, so a single worker has €4,250 of core credits. The Earned Income Credit for the self-employed rises by the same €125.
Home Carer and Rent Credits Raised [ CREDIT ]
Home Carer Tax Credit up €100 to €2,050, tapering to nil at €11,300 of home carer income. Rent Tax Credit up €150 to €1,150 for a single renter and up €300 to €2,300 for a jointly assessed couple, for both 2027 and 2028. The other credits are unchanged.
USC 2% Ceiling Raised [ USC ]
Upper limit of the 2% USC band increased €28,700 → €30,300, keeping a full-time worker on the new minimum wage within the 2% band. USC rates, the €13,000 exemption and the 8% threshold of €70,044 are unchanged.
Employee PRSI: October Increase [ PRSI ]
Class A employee rate rises 4.35% → 4.50% from 1 October 2027. The 4.35% that applies from January is the rate in force since 1 October 2026. Both steps are set by the Social Welfare (Miscellaneous Provisions) Act 2024, not by this Budget.
Employer PRSI: Threshold and October Increase [ PRSI ]
The weekly threshold for the higher employer rate rises from €552 to €600. Rates rise from 1 October 2027: low rate 9.15% → 9.30%; high rate 11.40% → 11.55%.
Mortgage Interest Tax Credit: Ended [ CREDIT ]
The temporary credit covered mortgage interest paid in 2023 to 2026, and Budget 2027 did not extend it. There is no credit for interest paid in 2027; claims for 2026 interest are still made after that year ends.
Minimum Wage Increased [ WAGE ]
National minimum wage rises €0.79 to €14.94 per hour from 1 January 2027. 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 | €46,500 |
|---|---|
| Single Person (Child Carer) / One Parent | €50,500 |
| Married / One Income | €55,500 |
| Married / Two Incomes Max transfer capped at €37,500 | Max €93,000 |
02. Universal Social Charge (USC)
Standard Bands
| First €12,012 | [ 0.5% ] |
|---|---|
| €12,012.01 – €30,300 | [ 2.0% ] |
| €30,300.01 – €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 | [ 4.35% ] |
|---|---|
| Oct 01 – Dec 31 | [ 4.50% ] |
Employer Rates (Class A)
| Weekly Earnings | Jan-Sep | Oct-Dec |
|---|---|---|
| ≤ €600 (Low Rate) | [ 9.15% ] | [ 9.30% ] |
| > €600 (High Rate) | [ 11.40% ] | [ 11.55% ] |
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 the Department of Social Protection awards 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 |
05. 2026 and 2027 Side by Side
The headline figures for PAYE employees in both years. A row in bold changed. Every 2026 figure is also on the Budget 2026 page.
| Rate, band or credit | 2026 | 2027 |
|---|---|---|
| Standard rate cut-off: single | €44,000 | €46,500 |
| Standard rate cut-off: married, one income | €53,000 | €55,500 |
| Standard rate cut-off: married, two incomes (maximum) | €88,000 | €93,000 |
| Standard rate cut-off: one-parent family | €48,000 | €50,500 |
| Higher rate of income tax | 40% | 40% |
| Personal tax credit: single | €2,000 | €2,125 |
| Personal tax credit: married | €4,000 | €4,250 |
| Employee (PAYE) tax credit | €2,000 | €2,125 |
| Home carer tax credit | €1,950 | €2,050 |
| Single Person Child Carer Credit | €1,900 | €1,900 |
| Widowed person credit (no children) | €2,540 | €2,665 |
| Rent tax credit: single | €1,000 | €1,150 |
| Rent tax credit: jointly assessed couple | €2,000 | €2,300 |
| Age tax credit: single | €245 | €245 |
| Mortgage interest tax credit (maximum) | €625 | Ended |
| USC exemption limit | €13,000 | €13,000 |
| USC 0.5% band: up to | €12,012 | €12,012 |
| USC 2% band: up to | €28,700 | €30,300 |
| USC 3% band: up to | €70,044 | €70,044 |
| Employee PRSI from 1 January | 4.2% | 4.35% |
| Employee PRSI from 1 October | 4.35% | 4.5% |
| Employer PRSI: higher rate applies above | €552 a week | €600 a week |
06. Take-Home Pay: 2026 and 2027
Annual take-home pay after income tax, USC and PRSI, for an employee aged 35 with no pension contribution and the standard credits for their status. A pension, a medical card, extra credits or your own certificate figures all change these, so use the calculator for your own answer.
A single person paying income tax below the old €44,000 cut-off keeps about €200 more a year, and someone at or above the new €46,500 cut-off close to €700, the full value of the wider band, easing as salary rises because the PRSI increase grows with pay. Some lower earners are slightly worse off: anyone whose credits already cancel all their income tax but who earns enough to pay PRSI gets nothing from the larger credits and still pays the higher PRSI rate. For a single person that is roughly €18,350 to €20,150 a year, costing at most €30; for a married couple on one income or a single parent it runs to about €30,000 (about €40,000 with the Home Carer credit), costing at most about €44. Why the same Budget lands so unevenly, and what a wider band or a bigger credit is worth at each salary, is worked through in Budget 2027 and your take-home pay.
| Gross salary | Single: 2026 | Single: 2027 | Change a month | Married, one income: 2026 | Married, one income: 2027 | Change a month |
|---|---|---|---|---|---|---|
| €25,000 | €22,620.80 | €22,833.30 | +€17.71 | €23,620.80 | €23,583.30 | €-3.12 |
| €35,000 | €29,934.06 | €30,147.56 | +€17.79 | €31,934.06 | €32,272.56 | +€28.21 |
| €45,000 | €37,010.30 | €37,408.81 | +€33.21 | €39,210.30 | €39,533.81 | +€26.96 |
| €55,000 | €42,286.56 | €42,970.06 | +€56.96 | €46,086.56 | €46,795.06 | +€59.04 |
| €70,000 | €50,200.93 | €50,861.93 | +€55.08 | €54,000.93 | €54,786.93 | +€65.50 |
| €90,000 | €59,755.63 | €60,386.63 | +€52.58 | €63,555.63 | €64,311.63 | +€63.00 |
| €120,000 | €74,084.38 | €74,670.38 | +€48.83 | €77,884.38 | €78,595.38 | +€59.25 |
Personal Circumstances
| Single Person Automatic for all PAYE workers. Combined with the Employee (PAYE) Credit (€2,125), total core tax reduction is €4,250. | €2,125 |
|---|---|
| Married / Civil Partner Jointly assessed couples receive twice the single personal credit. Unused credit can transfer between spouses to maximise the household benefit. | €4,250 |
| Widowed (with children) Single Person Child Carer Credit (€1,900) is automatically applied; widowed parents are the sole claimant by definition. | €2,125 |
| Widowed (no children) Higher than the standard single credit (€2,665 vs €2,125) to partially compensate for the loss of the coupled personal credit, where no dependent children are present and therefore no SPCCC applies. | €2,665 |
| Widowed Bereavement Year In the year of the death the whole year is treated as married, so the surviving spouse or civil partner keeps the married person's credit (€4,250) and the €55,500 band. It replaces the single credit rather than adding to it: with the Employee (PAYE) credit (€2,125) that is €6,375 in total. | €4,250 |
| Widowed Parent (Year 1) Decreasing special credit over 5 years post-bereavement, on top of personal credit (€2,125) 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 (€2,125) 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 (€2,125) 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 (€2,125) 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 (€2,125) 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 €2,125 applies once PAYE income reaches €10,625. Does not apply to self-employed income. | €2,125 |
|---|---|
| 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 €2,050 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 ≥ €11,300. For two-income couples, the calculator automatically applies whichever is worth more: this credit or the increased rate band. | €2,050 |
| Single Person Child Carer Comes with the Single Parent status together with the €50,500 rate band, since Revenue grants the two together: a parent who is not the primary claimant is due neither and is taxed as single. Also applied for Widowed (with children) and Widowed Parent (Year 1–5) statuses. | €1,900 |
| Dependent Relative Not available if the relative's own income is above Revenue's annual limit. | €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. | €1,150 |
| 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 €2,300 combined maximum. | €2,300 |
| Mortgage Interest Tax Credit The temporary credit covered mortgage interest paid in 2023 to 2026 and was not extended by Budget 2027, so there is no credit for interest paid in 2027. Claims for 2026 interest, capped at €625, are made after that year ends. | Ended |
| 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 towards this limit.
| Age in Tax Year | Max % of Earnings | Max Relievable Contribution (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, but the excess can generally be carried forward and relieved in later years. 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 Paid without income tax, USC or PRSI deducted, so the full amount reaches your take-home pay. | Exempt |
Frequently asked questions
What is the standard rate cut-off point for a single person in Ireland in 2027?
The standard rate cut-off point for a single person in Ireland in 2027 is €46,500. Income up to this threshold is taxed at 20%. Income above €46,500 is taxed at the higher rate of 40%. Single parents and widowed persons with qualifying children have a higher cut-off of €50,500, and a married couple on one income €55,500.
What is the USC exemption limit in Ireland for 2027?
The USC exemption threshold in Ireland for 2027 is €13,000. If your total income is €13,000 or less, you pay no USC. Above this, USC is charged in bands from 0.5% to 8.0%, with the 2% band running to €30,300. Those aged 70 or over, or holding a full medical card, with income of €60k or less, pay a maximum USC rate of 2.0%.
How much is the personal tax credit for a single person in Ireland in 2027?
A single person in Ireland is entitled to a personal tax credit of €2,125 and an Employee (PAYE) credit of €2,125 in 2027, a combined total of €4,250 which directly reduces income tax payable. Each rose by €125 in Budget 2027. Additional credits may apply for age, disability, caring responsibilities, or other personal circumstances.
When was Budget 2027 announced?
Budget 2027 was announced on Tuesday 6 October 2026. The income tax, USC and PRSI changes in it apply to pay from 1 January 2027 unless the Budget says otherwise.
What did Budget 2027 change for income tax?
Every standard rate cut-off rose by €2,500, to €46,500 for a single person and €55,500 for a married couple on one income. The personal and employee tax credits each rose by €125 to €2,125, the Home Carer credit by €100 to €2,050, and the Rent Tax Credit by €150 to €1,150 (€300 to €2,300 for a couple). The USC 2% band now runs to €30,300.
How much will my take-home pay change in 2027?
For a single person paying income tax, about €200 a year up to the old €44,000 cut-off, rising to close to €700 at the new €46,500 cut-off, then easing at higher salaries because PRSI rises with pay. The table on this page shows the change at salaries from €25,000 to €120,000 for a single person and a one-income married couple. For your own salary and circumstances, run the take-home pay calculator, which uses the 2027 rates.
Is anyone worse off after Budget 2027?
Slightly, among lower earners. Anyone whose tax credits already cancel all their income tax but who earns enough to pay PRSI gets nothing from the larger credits and still pays the higher PRSI rate. For a single person that is roughly €18,350 to €20,150 a year, at most €30; for a married couple on one income or a single parent it runs to about €30,000, at most about €43. Welfare changes announced the same day are not included here.
Does the Mortgage Interest Tax Credit continue in 2027?
No. It covered mortgage interest paid in 2023 to 2026, worth up to €625 for 2026, and Budget 2027 did not extend it.
Is the PRSI increase in 2027 part of Budget 2027?
No. It is already law. The Social Welfare (Miscellaneous Provisions) Act 2024 sets employee PRSI at 4.35% from 1 October 2026 and 4.5% from 1 October 2027, so it applies whatever the Budget announces, unless a later Act amends it.
Why might my first payslip in January look different?
PAYE and USC work on a cumulative basis that restarts on 1 January, so a new year's bands and credits show up on the first payslip of 2027. Revenue also sends your employer a new payroll notification for the year, which is where any change to your own credits and cut-off appears.
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