Income tax rates and bands 2026
Income tax is 20% on income up to your standard rate band and 40% on everything above it. The band depends on your circumstances:
| Circumstances | At 20% | At 40% |
|---|---|---|
| Single | First €44,000 | The rest |
| Single parent (Single Person Child Carer) | First €48,000 | The rest |
| Married or civil partners, one income | First €53,000 | The rest |
A married couple with two incomes can increase their band by up to €35,000 (no more than the lower earner's income), up to €88,000 in total.
Tax credits
Tax credits are taken off the income tax you owe:
- Personal tax credit: €2,000 for a single person, €4,000 for a married couple or civil partners.
- Employee (PAYE) tax credit: €2,000, or 20% of your PAYE income if that's less.
- Single Person Child Carer credit: €1,900 for a single parent whose child lives with them.
So a single PAYE employee gets €4,000 in credits, and pays no income tax on the first €20,000 they earn.
USC rates 2026
| Income | Rate | Tax |
|---|---|---|
| Up to €12,012 | 0.5% | 0.5% of income |
| €12,013 to €28,700 | 2% | €60.06 plus 2% of income over €12,012 |
| €28,701 to €70,044 | 3% | €393.82 plus 3% of income over €28,700 |
| Over €70,044 | 8% | €1,634.14 plus 8% of income over €70,044 |
If your total income is €13,000 or less, you pay no USC; above that, USC is due on all of it. People with a full medical card, and people aged 70 or over, earning up to €60,000 pay 0.5% on the first €12,012 and 2% on the rest.
PRSI 2026
Most employees pay Class A1 PRSI of 4.2% on all their pay until 30 September 2026, rising to 4.35% from 1 October 2026. There is no employee PRSI on weekly pay of €352 or less. Between €352 and €424 a week, a PRSI credit of up to €12.00 a week reduces it.
Budget 2027
Budget 2027, announced on 6 October 2026, proposes these changes from 1 January 2027. They still have to pass into law:
- The standard rate band rises by €2,500, to €46,500 for a single person.
- The personal and employee tax credits rise to €2,125 each.
- The 2% USC band is extended to €30,300.
- The minimum wage rises to €14.94 an hour.
See your own take-home pay with the salary calculator.