Two numbers decide most of your Irish income tax: your standard rate cut-off point, which Revenue also calls your rate band, and your tax credits. Both appear on your Tax Credit Certificate, both depend on your personal circumstances, and both are easy to get wrong if your status changes.
This guide explains what each one does in 2026, lists the main figures, and works through examples for single people, single parents and couples. To try your own numbers as you read, use the Ireland income tax calculator.
Income tax in two steps
Revenue works out your income tax in two steps.Revenue
- Gross tax. Income up to your standard rate cut-off point is taxed at the standard rate of 20%. Anything above it is taxed at the higher rate of 40%.
- Net tax. Your tax credits are taken off the gross tax, euro for euro. What is left is the income tax you pay.
The cut-off point controls how much of your income gets the lower rate. The credits are a fixed discount on the bill. Neither affects the Universal Social Charge or PRSI, which are worked out separately on your gross pay.
The standard rate cut-off point for 2026
Your rate band depends on your circumstances. For 2026:Revenue
| Your circumstances | Taxed at the standard rate | The balance |
|---|---|---|
| Single, or widowed without dependent children | First €44,000 | 40% |
| Single or widowed, qualifying for the Single Person Child Carer Credit | First €48,000 | 40% |
| Married or in a civil partnership, one income | First €53,000 | 40% |
| Married or in a civil partnership, two incomes | First €53,000, plus the lower earner’s income up to €35,000 | 40% |
Budget 2026 did not change these bands, so they are the same as in 2025.gov.ie If your pay rose this year, more of it may now fall into the higher rate.
The main tax credits for 2026
Most PAYE employees have at least two credits: a personal credit and the Employee Tax Credit. The common ones are:
| Tax credit | 2026 amount | Who gets it |
|---|---|---|
| Personal Tax Credit, single | €2,000 | Everyone assessed as single |
| Married Person or Civil Partner Tax Credit | €4,000 | Jointly assessed couples (shared) |
| Widowed Person, no dependent children | €2,540 | Widowed people and surviving civil partners |
| Employee Tax Credit | Up to €2,000 | Each person with PAYE income |
| Earned Income Credit | Up to €2,000 | The self-employed and proprietary directors |
| Single Person Child Carer Credit | €1,900 | Single parents who are the main carer |
| Home Carer Tax Credit | Up to €1,950 | Married couples where one partner cares for a dependent at home |
| Age Tax Credit | €245 single, €490 married | From age 65 |
| Rent Tax Credit | Up to €1,000, or €2,000 for a jointly assessed couple | Renters, at 20% of rent paid |
The Employee Tax Credit is the lower of €2,000 and 20% of your PAYE income, so only people on very low pay get less than the full amount. You get one per person, however many jobs you have, and it cannot be transferred to a spouse.Revenue The Earned Income Credit works the same way for self-employed income, but the two together cannot exceed the maximum Employee Tax Credit.Revenue
A worked example
Take a single employee earning €60,000 in 2026.
- The first €44,000 is taxed at 20% and the rest at 40%, giving gross tax of €15,200.
- Tax credits of €4,000 (the Personal Tax Credit plus the Employee Tax Credit) come off.
- Income tax for the year is €11,200.
| Line | Year |
|---|---|
| Gross income | €60,000.00 |
| Taxed at 20% | €8,800.00 |
| Taxed at 40% | €6,400.00 |
| Less tax credits | -€4,000.00 |
| Income tax | €11,200.00 |
Change only the status and the bill moves a long way. The same €60,000 earned by a single parent who qualifies for the Single Person Child Carer Credit gives income tax of €8,500, because the band is wider and there is an extra credit. For a widowed person without children it is €10,660.
Why a credit is worth the same to everyone
A tax credit reduces your tax directly, so €2,000 of credit saves €2,000 of tax whether you pay the standard or the higher rate. That is different from a relief that reduces your taxable income, such as a pension contribution, which saves more for a higher-rate taxpayer.
There is one catch: credits are not refundable. If your credits are larger than your gross tax, your income tax is nil, and the unused part is lost. A single person on €10,000 has gross tax of €2,000 and credits of €4,000, so they pay €0 in income tax but get nothing back for the rest. USC and PRSI can still apply.
Married couples and civil partners
Married couples and civil partners are usually jointly assessed. The rules then depend on whether one or both of you have income.Revenue
One income. The earner gets a band of €53,000 and the full married credit of €4,000. On €60,000, income tax is €7,400, against €11,200 for a single person.
Two incomes. The band rises by the lower earner’s income, up to a maximum increase of €35,000. The increase belongs to the lower earner and cannot be moved to the higher earner. If one partner earns €60,000 and the other €25,000, the couple’s band is €78,000. Once the lower earner reaches the maximum, the band stops growing: with €60,000 and €40,000 it is €88,000, and the couple pays €14,400 between them. Each partner keeps their own Employee Tax Credit.
Home Carer Tax Credit. Where one partner works in the home caring for a dependent person, such as a child, an older relative or a person with a disability, the couple can claim up to €1,950. The full credit applies if the home carer’s own income is €7,200 or less. Above that it is reduced by 50% of the excess and stops at €11,100.Revenue You cannot have both the Home Carer Tax Credit and the increased two-income band in the same year, so the calculator lets you compare. A one-income couple on €60,000 with the full credit pays €5,450.
Credits you have to claim
Your personal credit and the Employee Tax Credit are usually set up when you start work. Others only appear once you claim them in myAccount, and many people miss them.
- Rent Tax Credit. 20% of the rent you pay on your home, up to €1,000 a year (€2,000 for a jointly assessed couple). Budget 2026 extended it to 2028.Revenue A single person on €60,000 paying €1,200 a month in rent cuts their income tax to €10,200.
- Single Person Child Carer Credit. Claimed by the main carer of a child. It also brings the wider single-parent band.Revenue
- Home Carer Tax Credit, as above.
- Other credits, such as relief for medical insurance or a dependent relative. Add their total to the “other tax credits” box in the income tax calculator to see the effect.
Because credits are not refundable, a credit only helps you if you have income tax to set it against.
Older taxpayers
From age 65, you or your spouse can claim the Age Tax Credit. There is also a full exemption: if your total income is no more than €18,000 (single) or €36,000 (married or in a civil partnership), you pay no income tax at all. Just above those limits, marginal relief caps the tax at 40% of the income over the limit, where that is lower than the normal calculation.Revenue
How PAYE uses your band and credits
Your employer does not decide your band or credits. Revenue sends them on a Revenue Payroll Notification, and payroll spreads them evenly over the year: a monthly-paid employee gets one twelfth of the annual band and credits each month, a weekly-paid one gets one fifty-second.Revenue
If your circumstances change, such as marriage, a new child or starting to rent, update them in myAccount so that the next payslip uses the right figures. The salary after tax article shows what different statuses mean for monthly take-home pay.
Check your own tax
Pick your status, add any credits you claim, and the calculator shows your rate band, gross tax, credits and net income tax for 2026.
€7,200.00
- Your share
- €7,200.00
- Effective rate
- 14.4%
- Tax before credits
- €11,200.00
- Tax credits
- €4,000.00
- Standard rate band
- €44,000
- Taxable income
- €50,000
- Income tax only: USC and PRSI are charged separately (see the salary calculator for take-home pay).
Income tax: €7,200.00 for 2026
Show the breakdown
| Show the breakdown | Year |
|---|---|
| Gross income | €50,000.00 |
| Taxed at 20% | €8,800.00 |
| Taxed at 40% | €2,400.00 |
| Less tax credits | −€4,000.00 |
| Income tax | €7,200.00 |
- Income tax payable€7,20064%
- Covered by tax credits€4,00036%
Income tax is only one of three deductions. For the full take-home figure with USC and PRSI included, use the Ireland salary calculator or read Take-home pay in Ireland 2026. USC has its own bands and exemption, covered in USC 2026: bands, rates and who pays the reduced rate.
