Ireland Income Tax 2025: 20% and 40% Bands
2026-02-19
Ireland keeps income tax structurally simple: one standard 20% band, then a 40% higher rate above it. The catch is the band width — how much you can earn at 20% before hitting 40% — plus two extra deductions: USC and PRSI.
Income tax bands 2025 (single)
| Income up to | Rate |
|---|---|
| €42,000 | 20% |
| above | 40% |
Married and widowed-sole-parent bands differ and allow income splitting between spouses.
USC (Universal Social Charge)
A separate charge with a graduated scale from 0% up to ~11% at the top, with a lower entry threshold. It applies to gross income and is a meaningful second deduction.
PRSI (Pay Related Social Insurance)
Employee PRSI is around 4% (class A), funding social welfare and pensions.
Effective position
With the 20% band reaching €42,000 and modest USC/PRSI, a median Irish earner keeps roughly 75% of gross — among the lowest-deduction countries in our Europe tax ranking, alongside the UK.
Estimate your own
Use the European Net Salary Estimator and pick Ireland, or open the full Ireland country page.
Simplified 2025 figures for educational use, not official tax advice. Bands, USC, and PRSI rates and thresholds change in each budget — confirm with Revenue or a qualified advisor.