2 tax bands at 20% and 40%
Ireland's hidden trap: the 40% higher rate kicks in at just €42,000—but add USC (0.5-8%) and PRSI (4%) for a true top rate of 52%. A €80,000 earner pays ~€25,600 total (~32%). Tech workers benefit: SARP exempts 30% of income for qualifying expat executives. Ireland's 12.5% corporate tax attracts US tech giants.
Ireland uses a simple two-rate income tax system: 20% standard rate and 40% higher rate (from €42,000 for singles). But the hidden costs are USC (Universal Social Charge) at 0.5-8% and PRSI at 4%—pushing effective rates to 52% for high earners. A €80,000 earner pays roughly €18,000 income tax + €4,400 USC + €3,200 PRSI = €25,600 total (~32%). Ireland's 12.5% corporate tax makes it a tech hub—Google, Apple, Meta have EU HQs here. The SARP (Special Assignee Relief Programme) exempts 30% of income for qualifying expat executives. Filing deadline is October 31 (extended to mid-November for online). Use our calculator to estimate your Irish tax liability.
| Taxable Income | Tax Rate |
|---|---|
| €0 - €42,000 | 20% |
| Over €42,000 | 40% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Irish Revenue Commissioners
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Get Paid as a Contractor →Ireland has two income tax rates: 20% standard rate on income up to €42,000 (single) or €51,000 (married one earner), and 40% higher rate on income above these thresholds. But these aren't your only deductions—you also pay USC (0.5-8%) and PRSI (4%), bringing total marginal rates to 52% for high earners.
USC (Universal Social Charge) applies to gross income with rates: 0.5% on first €12,012, 2% on €12,012-€25,760, 4% on €25,760-€70,044, and 8% above €70,044. Unlike income tax, USC has no credits or allowances—it applies from euro one. On €80,000 income, expect ~€4,400 in USC alone. Medical card holders and over-70s earning under €60,000 pay reduced rates.
SARP (Special Assignee Relief Programme) exempts 30% of income over €100,000 from Irish tax for qualifying executives assigned to Ireland. Requirements: employed by a 'relevant employer', not Irish tax resident in 5 prior years, and earning at least €100,000. Relief applies for up to 5 years. Combined with Ireland's R&D credits, this makes Ireland attractive for senior tech hires.
For PAYE employees, tax is deducted automatically—no filing required unless you have additional income. Self-assessed taxpayers (self-employed, landlords, directors) must file by October 31 for the prior year. Online filers via ROS get extension to mid-November. Preliminary tax for the current year is also due October 31. Late filing incurs 5-10% surcharges.
Ireland's 40% rate kicks in at €42,000 (~£36,000) vs UK's 40% at £50,270—so Ireland taxes middle earners harder. But Ireland has no equivalent to UK's 60% trap (£100K-£125K). Total burden at €80,000: Ireland ~32% vs UK ~27%. Choose Ireland for: EU access, tech jobs, lower property prices outside Dublin. Choose UK for: lower taxes on mid-incomes, London salaries.
Last Updated: March 2026