Ireland (IE)
Ireland is a parliamentary republic and island nation on the western edge of Europe — the only English-speaking country in the Eurozone — celebrated for its warmly welcoming culture and legendary pub life, dramatic Wild Atlantic Way coastline and emerald green rolling countryside, a remarkable literary tradition from Joyce to Beckett, and its role as the European headquarters for the world's leading technology companies including Google, Apple, Meta, Microsoft, and LinkedIn.
Tax & Payslip Guide
Understanding your taxes in Ireland — tax year Calendar year (1 January – 31 December).
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 44,000 | 20% | Standard rate — applies to the first €44,000 of taxable income for a single person (2026). Higher for a married one-income couple (€53,000). Note: before income tax is calculated, USC and PRSI also apply on top. The effective combined rate at this level is approximately 28–30%. |
| 44,000 | ∞ | 40% | Higher rate — applies to all income above the standard rate cut-off point. For a single person, this is income above €44,000. For a married one-earner couple, above €53,000. With USC and PRSI added, the marginal rate for higher earners can reach approximately 52%. |
🏛️ Social Contributions
The USC is a tax on gross income that replaced earlier health and income levies. It applies from the first euro of income above €13,000 per year. The 2026 Budget adjusted Band 2 (upper threshold from €25,760 to €28,700) and Band 3 (rate from 4% to 3%). Reduced rates apply to those over 70 and medical card holders (2% maximum). Self-employed income above €100,000 is charged at 11% USC. Paid via PAYE for employees — deducted by employer.
PRSI funds social insurance benefits: state pension, jobseeker's benefit, illness benefit, maternity benefit, etc. Class A applies to employees earning over €38/week. The employee rate was 4.1% in 2025 and increased in phased steps during 2026. Employer rates were restructured from October 2026 with a lower tier for lower-paid workers. Self-employed pay Class S PRSI. At least 520 paid PRSI contributions (Class A) required to access most social insurance benefits.
🛒 VAT Rates
Ireland has one of the highest standard VAT rates in the EU at 23%. The 9% rate for hospitality (restaurants, hotels) was a temporary COVID-era measure; standard hospitality now falls under 13.5%. Medical services, financial services, and education are VAT-exempt rather than zero-rated.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Special Assignee Relief Programme (SARP): Available to qualifying employees assigned by a foreign employer to work in Ireland. Provides a 30% deduction from income tax on employment income between €100,000 and €1,000,000, effectively reducing the higher rate to approximately 28%. Must be applied within 30 days of commencing Irish employment. Employer must have a presence in a country with which Ireland has a tax treaty. Does not reduce USC or PRSI. Available for up to 5 years. Apply to Revenue via the SARP application form. Significant benefit for senior international assignees.
📋 Double Tax Treaties
Ireland has over 74 double taxation treaties (DTAs) covering most OECD countries. Key treaties: Ireland–UK (highly relevant given CTA), Ireland–USA (important for US multinationals), Ireland–Germany, Ireland–France, Ireland–India (important given large Indian tech community). DTAs prevent double taxation on income, capital gains, and in some cases inheritance. Revenue provides a full treaty list at revenue.ie. Ireland's 12.5% corporate tax rate and extensive treaty network make it highly attractive for multinationals.
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