Self-employed
The earned income credit for the self-employed
Last updated 16 October 2026
Self-employed people get a tax credit of 20% of earned income, up to the maximum. Combined with any employee credit, it can't exceed the employee credit.
The earned income credit is the self-employed version of the employee (PAYE) tax credit.
| Year | Maximum credit |
|---|---|
| 2025 | €2,000 |
| 2026 | €2,000 |
| 2027 (Budget 2027) | €2,125 |
The credit is the lower of the maximum and 20% of your earned income. It doesn't apply to rent or deposit interest.
With a job as well
If you also have PAYE income, the employee credit and the earned income credit together can't exceed the employee credit maximum. Revenue's example: €5,000 of PAYE pension and €2,000 of trading income get €1,000 + €400, which is under the limit.
The credit can't be transferred to a spouse, but each spouse with earned income gets their own.
Work it out
Sources
- Revenue: Earned Income Credit (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.