Do I have to pay tax on side income in Ireland?

Yes. Profit from selling, freelancing or gig work is taxable, even if it’s small. If you have a PAYE job and your side profit is under €5,000, you declare it in myAccount; at €5,000 or more you register for self-assessment.

What is the €5,000 rule?

If you’re a PAYE employee and your net income from other sources is under €5,000 a year (and the gross under €30,000), you can declare it on Form 12 and Revenue usually collects the tax through your tax credits. At €5,000 or more, you become a chargeable person and file a Form 11.

Do I pay PRSI on side income?

Once your self-employed income is €5,000 or more a year, you pay Class S PRSI on all of it, at the same rate as most employees (4.2%, then 4.35% from 1 October 2026), with a minimum of €650 a year.

When do I need to register for VAT?

Once your turnover goes over €42,500 a year for services, or €85,000 for goods. Below that, you don’t have to register.

Side income tax in Ireland: the €5,000 rule, VAT and Form 11

Q: Will Revenue know about my online sales?

Very likely. Under the EU rules known as DAC7, online platforms such as marketplaces and short-term rental sites report what their sellers earn to Revenue each year.

What counts as side income

Anything you earn outside your job counts: freelance work, tutoring, making and selling things, reselling goods you buy, or driving and delivering through an app. It’s the profit that’s taxed: what you earn less the costs of earning it.

Selling your own used things, such as old clothes or furniture, for less than you paid isn’t trading, so it isn’t side income.

How much tax you pay on it

Side profit is added to your salary, so it’s taxed at your highest rate. Your tax credits are already used against your salary, so none of it is tax-free:

Tax on €3,000 of side profit For a single employee, 2026 rates

With a €35,000 salary All taxed at 20%: You keep €2,310 Income tax €600, USC €90
With a €60,000 salary All taxed at 40%: You keep €1,710 Income tax €1,200, USC €90

No PRSI: Class S only starts once your self-employed income reaches €5,000. Your tax credits are already used against your salary, so all of the side profit is taxed.

So set aside about a quarter of your side profit for tax if you pay 20%, and nearer half if you pay 40%.

Under €5,000

If you have a PAYE job and your net income from other sources is under €5,000 (and your gross under €30,000), declare it on your Form 12 in myAccount. Revenue usually collects the tax by reducing your tax credits, so it comes out of your pay.

€5,000 or more

You become a chargeable person: register for income tax self-assessment and file a Form 11 by 31 October each year (or mid-November through ROS), paying preliminary tax for the current year at the same time. Preliminary tax must be at least 90% of this year’s tax or 100% of last year’s. You pay:

Income tax and USC on your profit, at your usual rates.
PRSI at Class S once your self-employed income is €5,000 or more, with a minimum of €650 a year.

You also get the Earned Income Tax Credit of up to €2,000, but only if you don’t already get the full PAYE credit from a job: the two together can’t be more than €2,000. Try the self-employed tax calculator.

VAT

Register once your sales go over €42,500 a year for services, or €85,000 for goods. Once registered, you charge VAT on your sales and can claim back VAT on your business costs. Our VAT calculator works out the VAT on a price.

Platforms report your income

Under DAC7, online platforms such as marketplaces and short-term rental sites report what their sellers earn to Revenue each year. If you sell regularly online, assume Revenue can see it, and declare it yourself.

Expenses you can deduct

Costs wholly for the business, such as supplies, stock, equipment, software and the business share of your phone and travel. Equipment that lasts for years is written off over several years rather than all at once. Keep records and receipts for 6 years.