## How tax credits work
In Ireland tax credits are deducted from the gross tax bill, not from your gross income. They are a direct reduction of the PAYE owed. If your gross PAYE for the year is €8,000 and your credits are €4,000, you pay €4,000.
Each credit has an annual value. Revenue divides this across your pay periods so the relief is spread evenly through the year. Weekly paid employees see roughly one fifty second of the annual credit each week.
## The main 2026 credits
| Credit | 2026 amount |
| --- | --- |
| Personal Tax Credit, single | €2,000 |
| Personal Tax Credit, married joint assessment | €4,000 |
| Employee (PAYE) Tax Credit | €2,000 |
| Earned Income Credit, self employed | €2,000 |
| Home Carer Tax Credit | €1,950 |
| Single Person Child Carer Credit | €1,750 |
| Age Tax Credit, 65+ single | €245 |
| Age Tax Credit, 65+ married | €490 |
| Incapacitated Child Credit | €3,800 |
| Dependent Relative Credit | €305 |
| Blind Person's Tax Credit, single | €1,950 |
## How credits appear on a payslip
Your payslip may not list each credit separately. It usually shows a total weekly or monthly credit figure. To confirm, check your Tax Credit Certificate on Revenue myAccount.
For a single PAYE employee with €4,000 of total credits:
- Weekly credit: €76.92
- Monthly credit: €333.33
## Worked example
Niamh is single, employed, and earns €38,000 in 2026.
- Tax at 20 percent on full €38,000 = €7,600
- No tax at 40 percent because €38,000 is under the €44,000 SRCOP
- Less credits of €4,000
- Annual PAYE = €3,600
- Monthly PAYE = €300
## Claiming additional credits
Credits beyond the standard two often need to be claimed actively. Common ones to claim through myAccount:
- Home Carer Credit, where one spouse cares for a dependent
- Tuition Fees relief
- Medical expenses (relief at 20 percent)
- Rent Tax Credit (€1,000 in 2026 for renters)
- Flat rate expenses for your occupation
## What if I am owed credits?
If you missed credits in a prior year, you can claim back up to four years. For the 2026 tax year, you can amend retrospectively until end 2030. Refunds are paid via your nominated bank account once a Statement of Liability is issued.
## Common errors
- Two jobs both using full credits, leading to underpayment
- Forgetting to update marital status after marriage or separation
- Not transferring unused credits between spouses
## Educational guidance
This article is for general information. Personal tax outcomes depend on your full income picture and entitlements. Refer to Revenue.ie for definitive figures and rules.