How Irish Income Tax Works — PAYE, USC & PRSI
Ireland has three separate taxes on income: Income Tax (20%/40%), USC (Universal Social Charge, 0.5%–8%), and PRSI (Pay Related Social Insurance, 4.1%). The standard rate band is €40,000 for single earners — income above this is taxed at 40%. Two tax credits (€3,750 total) reduce the final bill.
| Tax | Rate | Threshold |
|---|---|---|
| Income tax (standard) | 20% | 0 – €40,000 (single) |
| Income tax (higher) | 40% | Above €40,000 |
| USC band 1 | 0.5% | 0 – €12,012 |
| USC band 2 | 2% | €12,013 – €21,295 |
| USC band 3 | 4% | €21,296 – €70,044 |
| USC band 4 | 8% | Above €70,044 |
- →Personal Tax Credit (€1,875) + Employee Tax Credit (€1,875) = €3,750 total — applied automatically
- →PRSI Class A (employees): 4.1% on income above €18,304 — funds social welfare and pension
- →Married standard rate band widened to €49,000 (vs €40,000 single)
- →Self-employed: PRSI Class S 4% + 3% USC surcharge on income above €100,000
- →Ireland's 12.5% corporate tax rate attracts major multinationals — Apple, Google, Meta HQ here
- →File via Revenue Online Service (ROS) by October 31 — PAYE workers use MyAccount