Income tax in 2026
Income up to the standard rate band is taxed at 20%, the rest at 40%. Tax credits are then taken off the tax, not off your income, so a €2,000 credit is worth €2,000 whatever you earn.
| You are | Taxed at 20% up to | Main tax credits |
|---|---|---|
| Single | €44,000 | €2,000 personal + €2,000 employee |
| Single parent | €48,000 | plus €1,900 single person child carer |
| Married, one income | €53,000 | €4,000 married + €2,000 employee |
| Married, two incomes | €53,000 + up to €35,000 | €4,000 married + €2,000 per employee |
For a two-income couple the band rises by the lower earner's income, up to €35,000, and the extra part cannot be moved to the higher earner. The Home Carer Credit of up to €1,950 applies to a married couple with one partner caring for a child or dependent relative at home.
Universal Social Charge
USC is charged on gross income, before pension contributions, and each person pays their own. Income of €13,000 or less a year is exempt. Above that the whole income is charged in bands:
| 2026 income | USC rate |
|---|---|
| First €12,012 | 0.5% |
| €12,012.01 to €28,700 | 2% |
| €28,700.01 to €70,044 | 3% |
| Above €70,044 | 8% |
If you hold a full medical card or are 70 or over, and your income is €60,000 or less, you pay only 0.5% on the first €12,012 and 2% on the rest. The self-employed pay an extra 3% on non-PAYE income over €100,000.
PRSI
Most employees pay Class A PRSI of 4.2% until 30 September 2026 and 4.35% from 1 October 2026, on all earnings, with no upper limit. Nobody earning €352 a week or less pays it. Between €352.01 and €424 a week a PRSI credit of up to €12 reduces the charge, tapering by one sixth of earnings above €352.01. The calculator applies nine months at the old rate and three at the new one. Employers pay 9% (9.15% from October) on weekly pay up to €552 and 11.25% (11.40%) above.
A worked example
A single employee on €50,000 with no pension: income tax is €44,000 × 20% + €6,000 × 40% − €4,000 of credits = €7,200. USC is €60.06 + €333.76 + €639.00 = €1,032.82. PRSI is €961.54 a week at 4.2% for 39 weeks and 4.35% for 13 weeks = €2,118.75. Take-home pay is €39,648.43, about €3,304 a month. Every extra euro earned above €44,000 costs 40% + 3% + 4.2% = 47.2% in deductions.
Pensions and MyFutureFund
Contributions to an occupational pension or PRSA get income tax relief at your marginal rate, up to an age-related share of earnings: 15% under 30, 20% from 30, 25% from 40, 30% from 50, 35% from 55 and 40% from 60, on earnings up to €115,000. They do not reduce USC or PRSI. For a higher-rate taxpayer each €100 put into a pension costs €60 of take-home pay.
Since 1 January 2026, employees aged 23 to 60 earning over €20,000 who are not in a workplace pension are automatically enrolled in MyFutureFund. You pay 1.5% of gross pay, your employer adds 1.5% and the State 0.5%, on earnings up to €80,000. Your contribution comes out of net pay with no tax relief; the State top-up of €1 for every €3 you pay replaces it. Rates rise in steps to 6% each for you and your employer, and 2% from the State, over ten years. You can opt out after six months.