IRISH PAYROLL
PAYE in Ireland, explained.
Pay As You Earn is the Irish income-tax system. Two numbers decide what you pay: your standard rate cut-off point (where 20% becomes 40%) and your tax credits (which reduce the tax due). Here is how they combine in 2026.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or Revenue.
The 2026 PAYE bands and credits
Ireland has no Personal Allowance. Instead, you are taxed at 20% up to your standard rate cut-off point and 40% above it, and then your tax credits are subtracted from the tax calculated.
| Item | Single person, 2026 |
|---|---|
| Standard rate (20%) | On income up to €44,000 |
| Higher rate (40%) | On income above €44,000 |
| Personal Tax Credit | €2,000 |
| Employee (PAYE) Tax Credit | €2,000 |
| Typical credits before any PAYE | €4,000 |
Married couples and civil partners can have a higher joint cut-off and may transfer part of it and their credits between them. Budget 2026 kept the bands and main credits unchanged from 2025.
A worked example (illustrative)
A single person on €50,000 in 2026: 20% on the first €44,000 is €8,800; 40% on the remaining €6,000 is €2,400; gross PAYE is €11,200. Subtract €4,000 of tax credits and the PAYE actually deducted over the year is about €7,200. USC and PRSI are charged separately on top.
Why your PAYE moves between months
- On the cumulative basis, Revenue reconciles your year-to-date pay against year-to-date credits and bands every payslip — a bonus month can push you briefly to 40%, then the next month corrects.
- On the week-1 / month-1 basis, each period is treated independently and is not reconciled — common right after a job change.
- A missing or wrong tax credit, or an incorrect cut-off, changes the PAYE you pay until Revenue issues an updated RPN.
Read more on PAYE Ireland
Standard rate cut-off point
Where 20% ends and 40% begins.
Tax credits explained
How they reduce the PAYE you actually pay.
Cumulative vs week-1 basis
How Revenue applies your credits each period.
Married couple bands
Joint vs separate assessment.
Emergency basis
When Revenue has no RPN for you.
Returning emigrants
Setting up PAYE after years abroad.
Common questions
What are the PAYE bands in Ireland in 2026?
For a single person in 2026, income up to €44,000 is taxed at the 20% standard rate; income above that is at 40%. Your cut-off can be higher if you are jointly assessed. Tax credits (typically €4,000 for a single PAYE employee) then reduce the PAYE actually paid.
What is the standard rate cut-off point?
It is the income threshold up to which you pay 20% PAYE. Above it, the marginal rate is 40%. Revenue sets your specific cut-off and shows it on your Tax Credit Certificate and Revenue Payroll Notification (RPN).
Why do my PAYE deductions vary between months?
On the cumulative basis, Revenue reconciles year-to-date pay against year-to-date credits and bands every payslip. A bonus or unusual month can push you into 40% briefly, then the next month corrects back. The week-1 basis treats each period independently.
Can I check my PAYE position online?
Yes. Log in to Revenue myAccount, view your live Tax Credit Certificate, and see your year-to-date employment summary. You can also reallocate credits between two jobs and update your circumstances.
Run the PAYE Calculator
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Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension or employment advice. Always verify your payslip, PAYE, USC, PRSI, tax credits, deductions and take-home pay with your employer's payroll department, Revenue, a qualified tax adviser, accountant or another appropriately qualified professional.