The salary in your job offer is a gross figure. Before it reaches your bank account, three separate deductions come off it: income tax, the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). Newcomers often overestimate their net pay because they only budget for income tax, or underestimate it because they have heard Ireland's 40% rate and assume it applies to everything. This guide walks through the three deductions using the 2026 rates and gives you worked examples for three common salaries. All figures apply to the 2026 tax year as set out in Budget 2026 (announced in October 2025).
Deduction 1: income tax
Once the tax is calculated, tax credits are subtracted from it euro for euro. Almost every employee gets two: the Personal Tax Credit of €2,000 and the Employee (PAYE) Tax Credit of €2,000. Together they wipe out the first €4,000 of tax, which is why a single person pays no income tax at all on the first €20,000 of earnings. Renters can add the Rent Tax Credit of up to €1,000, and there are further credits for carers, single parents and some medical expenses.
Deduction 2: USC
USC is a separate charge on gross income and no tax credits reduce it. If you earn €13,000 or less in the year you are exempt. Above that, the whole of your income is charged in bands: 0.5% on the first €12,012, 2% from €12,013 to €28,700, 3% from €28,701 to €70,044 and 8% on anything above €70,044. Budget 2026 widened the 2% band from €27,382 to €28,700 so that a full-time minimum wage worker stays out of the 3% band.
Deduction 3: PRSI
PRSI is Ireland's social insurance contribution and it funds the State Pension, Jobseeker's Benefit, Maternity Benefit, Illness Benefit and other payments. Most private and public sector employees are in Class A. The employee rate is 4.2% of gross pay from 1 January 2026, rising to 4.35% from 1 October 2026. If you earn €352 or less in a week you pay nothing, and a tapered credit of up to €12 a week softens the charge for anyone earning between €352.01 and €424 a week. Your employer pays a separate, larger contribution on top of your salary that never appears in your deductions.
Worked examples for 2026
The table below assumes a single employee with only the personal and employee credits, paid evenly through the year, and uses the 4.2% PRSI rate that applies from January to September 2026. Because the rate rises to 4.35% in October, the annual PRSI figure will be roughly €13 higher on €35,000, €19 higher on €50,000 and €30 higher on €80,000 across the full year. Figures are rounded to the nearest euro.
| Gross salary | Income tax | USC | PRSI (4.2%) | Annual net | Monthly net |
| €35,000 | €3,000 | €583 | €1,470 | €29,947 | €2,496 |
| €50,000 | €7,200 | €1,033 | €2,100 | €39,667 | €3,306 |
| €80,000 | €19,200 | €2,431 | €3,360 | €55,009 | €4,584 |
Look at how the €35,000 case works. Income tax is 20% of €35,000, which is €7,000, minus €4,000 in credits, leaving €3,000. USC is 0.5% of €12,012 (€60) plus 2% of the next €16,688 (€334) plus 3% of the final €6,300 (€189), a total of €583. PRSI is 4.2% of €35,000, or €1,470. The overall deduction rate is a little over 14%.
At €50,000 the first €44,000 is taxed at 20% (€8,800) and the remaining €6,000 at 40% (€2,400), less €4,000 in credits, so €7,200. At €80,000 the 40% rate applies to €36,000 of income and the 8% USC rate kicks in on the slice above €70,044. Even so, the effective deduction rate on €80,000 is about 31%, not 40%. The 40% is a marginal rate that only applies to the top slice of income, although the marginal rate including USC and PRSI on that slice is 52.2%.
Things that change the numbers
Pension contributions through payroll reduce your income tax (though not USC or PRSI) and are worth considering once you have settled in. If you rent, claiming the Rent Tax Credit adds up to €1,000 a year to your net pay. If you start work part way through the year, your tax credits and standard rate band for the full year are still available, so you may pay very little tax in your first months or receive a refund the following January. Married couples can transfer part of their band and credits between them. Benefit in kind on a company car, health insurance paid by your employer or share awards is taxed through payroll as well, so ask about it before you accept a package.
For your own salary, use the take-home pay calculator at movingtoireland.co/tools/take-home-pay-calculator. It uses the same 2026 parameters described here and lets you switch on the rent credit, married bands and pension contributions.
