Income tax bands in Ireland 2026

Ireland has a progressive tax system, with lower income taxed at 20% and higher income at 40%. Your exact tax rate depends on your personal circumstances. With our guide to Ireland’s income tax bands, you’ll find the latest income tax rates and tax brackets for 2026 and learn how credits and reliefs can affect the amount you pay.

The information provided here is for informational and educational purposes only and does not constitute tax advice. You should consult with a qualified tax professional or adviser regarding your individual tax situation. Tax laws and regulations are complex and subject to change, and the information provided may not be applicable to your specific circumstances. We are not liable for any tax decisions or actions you take based on this information.

In Ireland, tax bands (or tax brackets) determine how much income tax you pay based on your earnings. The standard rate of 20% applies to income up to a certain limit, and any income above that is taxed at the higher rate of 40%. The income limit varies based on whether you are single, married, in a civil partnership, or a single parent. The 2026 tax rates and tax bands for Ireland are shown below.

Last updated: January 2026

Source: Revenue (*€53,000 with an increase limited to the income of the lower earner or €35,000, whichever is lower)

In Ireland, tax bands are used to determine the percentage of income that the government levies on individuals. For employees, income tax is usually collected through the PAYE (Pay As You Earn) system. The tax rate band will be shown on your Tax Credit Certificate, and your employer uses this to work out how much tax will be deducted from your weekly or monthly pay. 

Some people, such as the self-employed or those with extra income, file an annual income tax return to ensure they’ve paid the right tax.

The standard rate of tax (20%) applies to taxable income up to a certain threshold, which is  €44,000 for a single individual in 2026. Taxable income is your gross pay minus any ordinary contributions you make, such as pension contributions. Anything over that is known as the balance amount, and is charged at 40%. 

The standard rate cut-off point indicates the income level at which you start paying the higher rate of income tax. For instance, if you are single and your annual income is €48,000, the standard tax rate will apply for €44,000, while the remaining €4,000 will be taxed at 40%.

Irish tax rates can change and vary depending on your individual circumstances. For example, if you’re married or in a civil partnership, you may be subject to different standard rate cut-off points. You can check the most up-to-date rates on Revenue.ie.

Taxpayers in Ireland have the benefit of tax credits and tax reliefs to reduce their tax liability. Both tax credits and tax reliefs are ways to help you pay less tax, either by giving you direct deductions or by reducing the amount of your taxable income. 

• Tax Credits: Think of tax credits like coupons that directly reduce the amount of tax you owe. They’re instant discounts on your taxes. For example, employment tax credits, home carer tax credit, or single person child carer credit (SPCCC).

• Tax Reliefs: Tax reliefs are special rules that let you pay less tax because you made certain contributions. For instance, health expenses, donating to charity, or money you put into your pension may qualify for tax reliefs. Tax reliefs essentially lower the portion of your income that falls into each tax band in Ireland. For some, it can mean that less money is taxed at the higher rate.

You can calculate your income tax in a few simple steps as listed below:

1. Calculate your total income: Add up all your earnings, including salary, wages, bonuses, rental income, etc.

2. Factor in tax reliefs: If you qualify for any tax reliefs (like medical expenses, pension contributions, etc.), subtract them to work out your taxable income.

3. Apply tax bands: Depending on your income and status, apply the relevant tax rates. The first portion of your income is taxed at 20% and the next portion at 40% (as per the Irish tax brackets). Add these together.

4. Apply tax credits: Subtract any tax credits you're entitled to.

It's also essential to consider any additional taxes or contributions that might apply, such as USC (Universal Social Charge) and PRSI (Pay-Related Social Insurance).

You may use the calculation worksheet (pdf) provided by the Revenue service in Ireland or consult a tax professional to get your taxable income and final tax liability.

In Ireland, income tax is applied to various types of income, including earnings from employment, pensions, and rental income. Interest you earn from savings accounts is not taxed through the normal tax bands in Ireland. Instead, there is a separate tax known as DIRT, or Deposit Interest Retention Tax. The current DIRT rate is 33% (correct as of 2026) on savings interest, but savers may qualify for an exemption if they are over 65 and have a low income.

Some savers shop around and compare savings accounts to earn more competitive interest. At Raisin, you can explore a range of demand deposit and fixed term deposit accounts from partner banks. Registration is free and takes only a few minutes.