Ireland Income Tax Rates & Bands
Tax System Overview
System: Two-rate system with credits
Authority: Revenue Commissioners
Law: Taxes Consolidation Act 1997
Ireland’s tax year is the calendar year. The income tax system uses two rates (20% and 40%) with tax credits that reduce the final tax bill. PAYE employees have tax deducted at source. USC and PRSI are additional charges.
Key Deductions & Allowances
Personal Tax Credit: €1,875 (single) or €3,750 (married). Employee Tax Credit: €1,875. Medical expenses at 20%. Pension contributions (Revenue limits by age). Flat-rate expenses for certain occupations.
Ireland Income Tax Brackets
Current tax rates for Ireland. Two-rate system with credits system.
| Income Range | Tax Rate |
|---|---|
| €0 – €42,000 | 20% (Standard rate) |
| €42,001+ | 40% (Higher rate) |
Additional Taxes & Contributions
Beyond income tax, Ireland workers may pay these additional charges.
| Tax / Contribution | Rate | Notes |
|---|---|---|
| Universal Social Charge (USC) | 0.5–8% | 0.5% up to €12,012; 2% to €25,760; 4% to €70,044; 8% above |
| PRSI (Class A) | 4% | On all income; funds social insurance |
| Local Property Tax (LPT) | 0.1029–0.25% | Based on property value; not income-related |
Effective Tax Rates by Income
Estimated federal/national income tax only. Shows how effective rates differ from marginal rates.
| Annual Income | Est. Tax | Effective Rate |
|---|---|---|
| €30,000 | €3,126 | 10.4% |
| €42,000 | €5,406 | 12.9% |
| €60,000 | €12,606 | 21.0% |
| €80,000 | €20,606 | 25.8% |
| €100,000 | €28,606 | 28.6% |
Estimates based on standard deductions/allowances. Actual tax depends on personal circumstances, filing status, and applicable credits.
About Ireland's Tax System
Ireland uses a two-rate income tax system: 20% on income up to €42,000 (single) and 40% on the remainder. Tax credits (€1,875 personal + €1,875 employee = €3,750 for PAYE workers) directly reduce the tax bill.
The Universal Social Charge (USC) is an additional income charge with 4 bands from 0.5% to 8%. It applies to gross income with very few deductions.
PRSI (Pay Related Social Insurance) at 4% funds state pension, jobseeker’s benefit, and other social welfare payments.
The combined marginal rate for higher earners is approximately 52% (40% income tax + 8% USC + 4% PRSI), making Ireland’s top rate among the highest in Europe.
Tax Brackets by Country
Compare income tax systems across different countries.
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PhilippinesFrequently Asked Questions
20% on income up to €42,000 (single person) and 40% on income above that. Married couples with one income have a higher standard rate band of €51,000.
The Universal Social Charge is levied at 0.5% (up to €12,012), 2% (€12,013–€25,760), 4% (€25,761–€70,044), and 8% (above €70,044).
Pay Related Social Insurance at 4% of gross income funds social welfare benefits including the State Pension.
Personal Tax Credit (€1,875), Employee Tax Credit (€1,875), and potentially Earned Income Credit, Home Carer Credit, and others.