Ireland's Income Tax rates for 2026 are 20% within your standard-rate band and 40% on taxable income above it, as explained in Revenue's Income Tax guidance. There is no single Ireland tax rate covering everything: USC, PRSI, company profits and purchases each have separate rules.
Rates checked as at 19 October 2026
The right starting point is the type of income or transaction involved. For salary and self-employed income, consider Income Tax, tax credits and the separate USC and PRSI rules. For a company, distinguish tax on its profits from deductions on an owner's salary.
What is the tax rate in Ireland?
This overview summarises the main rates applying in 2026. The qualifications matter just as much as the headline percentages.
| Tax or contribution | 2026 headline rate | Main qualification |
|---|---|---|
| Income Tax | 20% and 40% | Your household circumstances determine the standard-rate band; credits reduce calculated tax. |
| USC | 0.5%, 2%, 3% and 8% | Progressive bands, exemptions and special rates apply. See Revenue's standard USC rates. |
| Employee PRSI, Class A | 4.35% from 1 October 2026 | Low-earnings rules and a tapered credit apply. See the Department of Social Protection's Class A rates. |
| Corporation Tax | 12.5% or 25% | The rate depends on the income category. See Revenue's basis of charge. |
| VAT | 23%, 13.5% or 9% | These principal rates depend on the supply and are not an exhaustive list of treatments. See Revenue's current rates. |
Do not add these percentages together. They apply to different amounts, bands or transactions, and not every person or business is subject to every charge.
Income Tax rates and bands for 2026
Income Tax is progressive. The higher rate applies only to taxable income above your relevant standard-rate band, not to all your income.
First, calculate the tax falling within each band. Then deduct the tax credits for which you qualify. USC and PRSI are considered separately, so an Income Tax calculation alone is not a take-home-pay calculation.
Which standard-rate band applies?
Revenue's 2026 tax relief charts set out these annual bands:
- Single person without qualifying children: 20% on the first €44,000 of taxable income, then 40% on the balance.
- Person qualifying for the Single Person Child Carer Credit: 20% on the first €48,000, then 40% on the balance.
- Jointly assessed married couple or civil partners with one income: 20% on the first €53,000, then 40% on the balance.
- Jointly assessed couple with two incomes: the €53,000 band can increase by the lower earner's income, capped at €35,000.
The additional two-income band cannot be transferred between partners. It is therefore not an unrestricted combined allowance that either partner can use in full.
These are taxable-income bands, not amounts of tax payable. Choosing the correct band comes before applying credits.
How tax credits change the amount payable
Tax credits reduce calculated Income Tax. They do not change the 20% and 40% rates themselves.
Under Revenue's 2026 Budget summary, the principal amounts are:
- Single Person Tax Credit: €2,000.
- Married Person or Civil Partner Tax Credit: €4,000.
- Employee Tax Credit: up to €2,000, subject to eligibility.
- Earned Income Tax Credit: up to €2,000, subject to eligibility.
These are not four credits that everyone receives. Your circumstances and income type determine which apply.
For example, the Employee Tax Credit and Earned Income Tax Credit have their own eligibility rules. A business owner should not assume that every credit listed can simply be added to their calculation.
USC and PRSI alongside Income Tax
USC and PRSI are separate from Income Tax. Each has its own rates and qualifications, so the Income Tax band alone does not establish total deductions from salary or self-employed income.
Employers must deduct Income Tax, USC and employee PRSI where applicable and report payroll details on or before each pay date, under Revenue's employer rules.
USC bands, exemption and special rates
For 2026, the standard annual USC bands are:
- 0.5% on the first €12,012.
- 2% on the next €16,688, taking income to €28,700.
- 3% on the next €41,344, taking income to €70,044.
- 8% on the balance above €70,044.
The 2026 USC exemption limit is €13,000. If relevant total income exceeds that limit, USC applies to the full chargeable income, not just the amount above €13,000.
Reduced rates can apply to people aged at least 70 or holding a full medical card where annual income does not exceed €60,000. For eligible people in 2026, the rates are 0.5% on the first €12,012 and 2% on the balance. A GP visit card does not qualify under Revenue's reduced-rate rules.
For 2026, an additional 3% USC surcharge applies to annual non-PAYE income above €100,000. This produces an 11% USC rate on that excess, not on all income.
Read more about USC rates and eligibility. If you work for yourself, the wider guide to taxes for sole traders in Ireland explains how the separate obligations fit together.
PRSI rates and the October 2026 change
For Class A employees, the main employee PRSI rate increased from 4.20% to 4.35% on 1 October 2026. The October rate should not be treated as though it applied throughout the year.
Under the 2026 Class A rules:
- Weekly earnings not exceeding €352 attract no employee PRSI.
- A tapered employee credit applies to weekly earnings between €352.01 and €424.
Employer PRSI is separate from employee deductions. From 1 October 2026, the employer rates are 9.15% for weekly earnings above €352 and not exceeding €552, and 11.40% for weekly earnings above €552.
For annual income assessed through self-assessment, Class S PRSI uses a 2026 blended rate of 4.2375%. A minimum annual contribution of €650 applies where Class S liability arises.
Class S includes self-employed people and certain company directors. Do not assume that every director has the same PRSI class or that the current Class A employee rate applies to all directors.
Profits of Irish companies: 12.5% or 25%?
As at 19 October 2026, Corporation Tax is 12.5% on trading income and 25% on non-trading income, such as rental and investment income, and income from excepted trades. The nature of the income determines the rate.
For the distinction in more detail, see how Ireland's 12.5% corporate tax rate works. Calculating the tax is also separate from meeting Corporation Tax deadlines and payments.
Does the 15% minimum apply to every company?
No. As at 19 October 2026, Pillar Two generally provides a 15% minimum effective tax rate per jurisdiction for multinational and large domestic groups with consolidated annual revenue of at least €750 million in at least two of the preceding four fiscal years.
It operates through top-up taxes. It is not a blanket replacement of the ordinary Corporation Tax rates for every Irish company.
Company owners who need help applying the relevant figures can use accounting and bookkeeping support for Irish companies.
Other Irish tax rates at a glance
Purchases, asset disposals, gifts and inheritances fall under different tax rules. An Income Tax band does not determine the rate on these transactions.
Rates on goods and services
From 1 January 2026, the principal VAT rates are 23%, 13.5% and 9%, with the applicable rate depending on the goods or services supplied.
These are not an exhaustive list of all treatments. For further detail, see VAT rates and calculations.
Capital gains, gifts and inheritances
For disposals on or after 7 October 2026, the standard Capital Gains Tax rate is 31%, replacing the earlier 33% standard rate.
Development-land gains remain subject to 33%, and other special CGT rates continue unchanged. The disposal date therefore matters when identifying the applicable rate.
For gifts and inheritances on or after 7 October 2026, Capital Acquisitions Tax remains 33% on the taxable excess above the applicable cumulative threshold:
- Group A: €420,000.
- Group B: €44,000.
- Group C: €22,000.
Previous taxable benefits within the same group must be aggregated. The threshold is not a fresh allowance for each separate gift or inheritance.
Are the announced 2027 tax changes already in force?
The proposed 2027 personal-tax changes are not the rates to use for 2026 income.
Budget 2027, announced on 6 October 2026, proposed:
- Increasing the higher-rate Income Tax entry point by €2,500.
- Increasing the main tax credits by €125.
- Increasing the second USC band ceiling from €28,700 to €30,300.
These figures come from the Budget 2027 announcement. They are proposals for 2027 and should not be substituted into a current 2026 calculation or presented as settled 2027 rules.
The CGT and CAT changes have a different timetable. The supplied CGT reduction and CAT thresholds apply from 7 October 2026. They should not be grouped automatically with future personal-tax measures.
In short, distinguish an announcement date from an effective date. A Budget can contain measures with different starting dates.
FAQ
What is the tax rate in Ireland in 2026?
There is no single percentage. Income Tax is 20% within the relevant standard-rate band and 40% above it. Company profits generally face 12.5% or 25%, depending on the income category, while purchases can attract different VAT rates. USC and PRSI have separate rules.
Does Ireland's 40% tax rate apply to all my income?
No. In 2026, it applies only to taxable income above your applicable standard-rate band. Income within that band is taxed at 20%, and eligible tax credits then reduce calculated Income Tax.
Does Ireland's Income Tax rate include USC and PRSI?
No. USC and PRSI are separate deductions with their own bands, exemptions or contribution rules. A 20% Income Tax rate does not mean that total salary deductions are 20%.
Do all companies pay 12.5%, or is it 15%?
The ordinary rate on trading income is 12.5% as at 19 October 2026. Pillar Two's 15% minimum effective-rate system applies to groups meeting its scope conditions and operates through top-up taxes. It does not replace ordinary rates for every company.
Have Ireland's tax rates changed since Budget 2027?
Some changes already apply, while others remain future proposals. The standard CGT reduction and revised CAT thresholds apply from 7 October 2026. The announced personal Income Tax, tax-credit and USC changes are proposals for 2027, not the current 2026 rules.
