USC and PRSI are charged separately and are not reduced by tax credits.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
Rate bands 2026
Status
20% on the first
40% on
Single, no children
€44,000
the balance
Single parent (SPCC)
€48,000
the balance
Married, one income
€53,000
the balance
Married, two incomes
€53,000 + up to €35,000
the balance
Main tax credits 2026
Credit
Amount
Personal (single)
€2,000
Personal (married or civil partners)
€4,000
Employee (PAYE)
€2,000
Earned income (self-employed)
€2,000
Single Person Child Carer
€1,900
Home Carer (max)
€1,950
Rent (single / couple)
€1,000 / €2,000
Age (single / couple)
€245 / €490
Worked example: €60,000 single
Taxable income €60,000, single, 2026
20% of €44,000 is €8,800 and 40% of the remaining €16,000 is €6,400, so gross tax is €15,200. The personal and employee credits take off €4,000, leaving €11,200.00 of income tax.
Income tax€11,2002026
Total tax credits
€4,000
Standard rate cut-off
€44,000
Effective income tax rate
18.67%
Step by step
20% on the first €44,000
€8,800.00
40% on the balance
€6,400.00
Gross tax
€15,200.00
Less Personal credit
-€2,000.00
Less Employee (PAYE) credit
-€2,000.00
Income tax payable
€11,200.00
Budget 2027
For 2027 the bands rise by €2,500 (single €46,500; married one income €55,500) and the personal, employee and earned income credits rise to €2,125. The home carer credit goes to €2,050 and the Rent Tax Credit to €1,150 (€2,300 for couples). Select 2027 above to see the effect.
Tips
Transfer the band between spouses where one earns much more — the €53,000 base band can be allocated as you choose when jointly assessed.
Claim the Rent Tax Credit for previous years too: it can be claimed back to 2022 through myAccount.
Flat-rate expenses for your profession reduce taxable income without receipts.
Questions people ask
What is the standard rate cut-off?
The amount of income taxed at 20%. In 2026 it is €44,000 for a single person, €48,000 for a single parent claiming the Single Person Child Carer Credit and €53,000 for a married couple with one income.
What is the difference between a tax credit and a tax relief?
A tax credit reduces the tax you owe euro for euro. A relief (such as a pension contribution) reduces the income that is taxed, so its value depends on your rate.
Are unused tax credits refunded?
No. Credits can reduce income tax to zero but are not paid out. For married couples, most unused credits can be transferred between spouses.
Do tax credits reduce USC?
No. USC and PRSI are calculated separately on gross income.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
