Key takeaway
Most employees in Ireland pay tax through PAYE (Pay As You Earn). Your employer deducts income tax, USC, and PRSI from your salary before you receive it.
Key things to know
- Register on myaccount.revenue.ie as soon as you start work to prevent emergency tax.
- Standard income tax rates: 20% up to approx €42,000, then 40% above that.
- USC and PRSI are additional deductions on top of income tax.
- Emergency tax can be fixed quickly — register with Revenue and ask your employer to update your details.
- You may be entitled to a tax refund at year end — check via myaccount.revenue.ie.
How PAYE Works
PAYE (Pay As You Earn) means your employer calculates and deducts your tax each pay period and pays it directly to Revenue. You do not need to file a tax return as a standard employee. However, register on myaccount.revenue.ie to ensure your tax credits and cut-off points are applied correctly.
Income Tax Rates (2025)
- 20% on income up to approximately €42,000 (single person)
- 40% on income above that
Married couples have a higher combined rate band. Check revenue.ie for current thresholds as these change.
Tax Credits
Tax credits reduce the amount of tax you actually pay. Every employee is entitled to:
- Personal Tax Credit — €1,875 per year (2025)
- Employee (PAYE) Tax Credit — €1,875 per year (2025)
Combined, these mean you effectively pay no income tax on the first approximately €18,750 of your earnings.
USC — Universal Social Charge
USC applies to income above €13,000 per year. Rates (2025):
- 0.5% on income up to €12,012
- 2% on income from €12,012 to €25,760
- 4% on income from €25,760 to €70,044
- 8% on income above €70,044
PRSI
PRSI contributions fund social welfare benefits. Most employees pay Class A PRSI at 4% of gross pay. Your employer pays an additional ~11.15% employer contribution. See our PRSI guide for full details on what your contributions unlock.
Emergency Tax
If Revenue does not have your details when you start a new job, your employer deducts tax at the emergency rate — higher than normal and without your tax credits. Fix it by registering on myaccount.revenue.ie, adding your new job under "Manage Your Tax", and Revenue will automatically update your employer.
End-of-Year Tax Refunds
If you overpaid tax (common in your first year or if you started mid-year), claim a refund through myaccount.revenue.ie under "Review Your Tax". Most refunds are processed within a few weeks.
Official Sources
Sources: revenue.ie, citizensinformation.ie
General guidance only. Always verify with official sources — gov.ie, citizensinformation.ie, hse.ie.