How it's calculated
Irish income tax has two rates and a list of tax credits. Revenue taxes your income at the standard rate of 20% up to your rate band (the "standard rate cut-off point") and at 40% above it. That gives your gross tax. Tax credits are then subtracted, euro for euro.Revenue
Rate bands for 2026:Revenue
| Personal circumstances | Taxed at 20% | Personal credit |
|---|---|---|
| Single, or widowed without dependent children | €44,000 | €2,000 (widowed €2,540) |
| Single parent (Single Person Child Carer Credit €1,900) | €48,000 | €2,000 |
| Married or civil partners, one income | €53,000 | €4,000 |
| Married or civil partners, two incomes | €53,000 + lower earner's income, max €35,000 | €4,000 |
Each earner also gets the Employee Tax Credit (PAYE income) or the Earned Income Credit (self-employment): the lower of €2,000 or 20% of that income.Revenue
The formula
- Taxable income = gross income − pension contributions within the age-related limit.
- Gross tax = 20% × min(taxable income, rate band) + 40% × (taxable income − rate band).
- Credits = personal + Employee/Earned Income + Single Person Child Carer + Home Carer (up to €1,950) + Age (65+) + Rent (20% of rent, up to €1,000, or €2,000 for a couple) + any others.
- Income tax = gross tax − credits, but not less than zero.
- Age 65+: no tax if total income is at most €18,000 (single) or €36,000 (married); just above, marginal relief limits tax to 40% of the excess when that is lower.Revenue
For a couple with two incomes, the increase in the band can only be used against the lower earner's income. The calculator gives the higher earner the base band and the married person's credit, passes any band they cannot use to the lower earner, and keeps each person's Employee Tax Credit with them. That reproduces Revenue's own example of civil partners on €55,000 and €20,800, whose band is €73,800.
Worked example
A single PAYE employee on €50,000:
| Line | 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 |
The same income for a married couple with one earner and a home carer is taxed at €2,050.00. A dual-income couple on €50,000 and €30,000 pays €8,000.00 between them, of which €4,000.00 falls on the €50,000 earner.
Assumptions and limitations
- Income tax only. USC and PRSI are separate; the Ireland salary calculator adds them for take-home pay.
- One kind of income. Each person's income is treated as either PAYE or self-employment. Mixed income, rental income, benefit in kind and foreign income are not split out.
- Home Carer Tax Credit is offered for one-income couples with a home carer who has no income. A two-income couple can choose it instead of the band increase where the home carer earns less than €11,100, but this calculator does not compare the two.
- Not included: widowed parent credits, the Dependent Relative, Blind, Incapacitated Child and Mortgage Interest credits, medical expenses relief and other year-end claims. Add any credit amounts under "Other tax credits".
- Annual figures. Payroll spreads the band and credits evenly over the year; Revenue's per-pay-period examples round them up to the cent, so weekly tax can differ by a cent.