Irish Tax System Explained
Income tax rates and bands, USC, PRSI — how the three components of Irish tax work together.
PAYE Guide
How PAYE works, Revenue Payroll Notifications (RPNs), emergency tax, and getting a tax refund.
Tax Credits
Personal, employee, home carer, single person child carer credits — amounts and how to claim.
Self-Assessment
ROS registration, filing Form 11, paying preliminary tax, deadlines, and record keeping.
Rental Income Tax
Allowable expenses, RTB registration, calculating taxable rental profit, and capital allowances.
Capital Gains Tax
CGT rates (33%), principal private residence relief, entrepreneur relief (10%), annual exemption, and filing.
Capital Acquisitions Tax
Gift tax and inheritance tax, group thresholds (A: €400k, B: €32.5k, C: €16.25k), agricultural and business relief.
Universal Social Charge (USC)
USC rates, bands, exemptions, reduced rates for over-70s and medical card holders.
PRSI Guide
PRSI classes (A, S, J, etc.), employee and employer rates, benefits linked to contributions.
Rent Tax Credit
Eligibility, amount (€1,000/€2,000), how to claim through myAccount, RTB registration requirements.
Medical Expenses Relief
Tax relief on health costs: GP visits, hospital charges, dental work, nursing home fees — 20% relief.
Marriage & Separation Tax
Joint assessment, separate assessment, transfer of tax credits and bands, treatment on separation.
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The Irish tax system in 2026: the essentials
Irish tax is collected by Revenue through three charges on income: Income Tax at 20% and 40%, the Universal Social Charge (USC), and PRSI. For 2026 the standard rate band is €44,000 for a single person (€53,000 for a married couple with one income, up to €88,000 with two incomes): income within the band is taxed at 20%, anything above at 40%. Every employee also gets two €2,000 tax credits — the personal credit and the employee credit — which reduce tax euro-for-euro, so a single PAYE worker pays no income tax on roughly the first €20,000 of earnings. USC runs at 0.5%, 2%, 3% and 8% across the bands, and PRSI is 4.2% on earnings above €441 a week (4.35% from 1 October 2026).
For most employees, tax is handled automatically through the PAYE system: your employer deducts the right amounts using a Revenue Payroll Notification (RPN) built from your tax credits and band, and you never file a return. You should still check your details in myAccount (revenue.ie) — especially when you start a new job, get married, or have a baby — and you can claim reliefs there for medical expenses, rent (the Rent Tax Credit of €1,000 for a single person, €2,000 for a couple, for 2024-2028), tuition fees and more. If you are over-taxed, the balancing process at year-end refunds you automatically.
If you are self-employed, a landlord, or have significant non-PAYE income, you move to self-assessment: register for Income Tax, file a Form 11 through ROS, and pay preliminary tax by 31 October each year (at least 90% of the current year's liability, or 100% of the previous year's, to avoid interest). The self-employed pay the same income tax bands but no employee credit — instead they get the earned income credit of €2,000 — plus USC and Class S PRSI (4.2%, 4.35% from October 2026).
Beyond income tax, three capital taxes matter: Capital Gains Tax (33% on gains above the €1,270 annual exemption, with your main home exempt), Capital Acquisitions Tax (33% on gifts and inheritances above group thresholds — €400,000 from a parent), and Local Property Tax on homes. Landlords pay income tax on rental profits at their marginal rate but can deduct expenses including mortgage interest (100% deductible in 2025-2026), and homeowners can earn up to €14,000 a year tax-free renting out a room under Rent-a-Room relief.
The golden rules for 2026: keep your myAccount details current so your credits and band are right from day one; keep receipts for medical expenses, rent and work expenses; file on time if you are self-assessed (interest and surcharges apply to late payers); and when in doubt, use Revenue's free online guidance or a tax adviser — the guides below cover each area of the system in detail with the 2026 rates, bands and deadlines.