* €53,000 with an increase of €35,000 maximum
Income tax bands
| Income tax rates & bands | 2025 € |
2026 € |
||
|---|---|---|---|---|
| At 20%, first | At 40% | At 20%, first | At 40% | |
| Single person | 44,000 | Balance | 44,000 | Balance |
| Married couple (one income) | 53,000 | Balance | 53,000 | Balance |
| Married couple (two incomes)* | 88,000 | Balance | 88,000 | Balance |
| One parent / widowed parent | 48,000 | Balance | 48,000 | Balance |
Income tax credits
| Key income tax credits | 2025 € |
2026 € |
|---|---|---|
| Single person | 2,000 | 2,000 |
| Married couple / civil partnership | 4,000 | 4,000 |
| Single person child carer credit | 1,900 | 1,900 |
| Widowed person (no dependent children) | 2,540 | 2,540 |
| Employee credit | 2,000 | 2,000 |
| Earned income credit | 2,000 | 2,000 |
| Home carer credit | 1,950 | 1,950 |
| Incapacitated child tax credit | 3,800 | 3,800 |
| Rent tax credit - single person (max.) | 1,000 | 1,000 |
| Rent tax credit - married couple (max.) | 2,000 | 2,000 |
PRSI & USC - Employees
| PRSI & USC 2025 - Employment income | % | Income |
|---|---|---|
| Employer | 11.15% / 11.25% (A) | No limit |
| 8.9% / 9% (A) | If income is €496 p/w or less | |
| Employee (class A1) | ||
| PRSI | 4.1% / 4.2% (A) | No limit (B) |
| Universal Social Charge | 0.5% | €0 to €12,012 (C) |
| 2% | €12,012.01 to €27,382 (D) | |
| 3% | €27,382.01 to €70,044 | |
| 8% | > €70,044.01 | |
(A) From 1 October 2025, the employee PRSI rate increases to 4.2%. The employer PRSI rate increases to 11.25% and to 9% where weekly income is €441 or less.
(B) Employees earning €352 or less per week are exempt from PRSI. In any week in which an employee is subject to a full-rate PRSI, all earnings are subject to PRSI. Unearned income in excess of €5,000 per annum is subject to PRSI. Sliding scale PRSI credit of max. €12 per week where weekly income between €352 and €424.
(C) Individuals with total income up to €13,000 are not subject to the Universal Social Charge.
(D) Reduced rate (2.0%) applies for persons aged 70 or older and/or with a full medical card, where the individual’s income does not exceed €60,000.
| PRSI & USC 2026 - Employment income | % | Income |
|---|---|---|
| Employer | 11.25% / 11.40% (A) | No limit |
| 9.0% / 9.15% (A) | If income is €496 p/w or less | |
| Employee (class A1) | ||
| PRSI | 4.2% / 4.35% (A) | No limit (B) |
| Universal Social Charge | 0.5% | €0 to €12,012 (C) |
| 2% | €12,012.01 to €28,700 (D) | |
| 3% | €28,700.01 to €70,044 | |
| 8% | > €70,044.01 | |
(A) From 1 October 2026, the employee PRSI rate increases to 4.35%. The employer PRSI rate will increases to 11.40% and to 9.15% where weekly income is €441 or less.
(B) Employees earning €352 or less per week are exempt from PRSI. In any week in which an employee is subject to a full-rate PRSI, all earnings are subject to PRSI. Unearned income in excess of €5,000 per annum is subject to PRSI. Sliding scale PRSI credit of max. €12 per week where weekly income between €352 and €424.
(C) Individuals with total income up to €13,000 are not subject to the Universal Social Charge.
(D) Reduced rate (2.0%) applies for persons aged 70 or older and/or with a full medical card, where the individual’s income does not exceed €60,000. For medical card holders, this reduced rate has been extended until the end of 2027.
Self-employed PRSI & USC
| Self-employed PRSI & USC 2025 | Rate (%) | Income Band |
|---|---|---|
| PRSI | 4.1% / 4.2% (A) | No limit (B) |
| Universal Social Charge | 0.5% | €0 to €12,012 (C) |
| 2% | €12,012.01 to €27,382 (D) | |
| 3% | €27,382.01 to €70,044 | |
| 8% | €70,044.01 to €100,000 | |
| 11% | > €100,000 |
(A) From 1 October 2025, the PRSI rate increases from 4.1% to 4.2%.
(B) Minimum annual PRSI contribution is €650 from 1 October 2024.
(C) Individuals with total income up to €13,000 are not subject to the Universal Social Charge.
(D) Reduced rate (2.0%) applies for persons aged 70 or older and/or with a full medical card, where the individual's income does not exceed €60,000.
| Self-employed PRSI & USC 2026 | Rate (%) | Income Band |
|---|---|---|
| PRSI | 4.2% / 4.35% (A) | No limit (B) |
| Universal Social Charge | 0.5% | €0 to €12,012 (C) |
| 2% | €12,012.01 to €28,700 (D) | |
| 3% | €28,700.01 to €70,044 | |
| 8% | €70,044.01 to €100,000 | |
| 11% | > €100,000 |
(A) From 1 October 2026, the PRSI rate increases from 4.2% to 4.35%.
(B) Minimum annual PRSI contribution is €650 from 1 October 2024.
(C) Individuals with total income up to €13,000 are not subject to the Universal Social Charge.
(D) Reduced rate (2.0%) applies for persons aged 70 or older and/or with a full medical card, where the individual’s income does not exceed €60,000. For medical card holders, this reduced rate has been extended until the end of 2027.
Get in touch
The measures unveiled in Budget 2026 will have far-reaching implications for businesses across Ireland. If you have any enquiries, comments, or wish to explore further, we are here to assist.
Contact Orla Gavin of our Tax team today.
