Tax credits
The Employee Tax Credit: €2,000 in 2026, €2,125 in 2027
Last updated 16 October 2026
Everyone paid through PAYE gets the Employee Tax Credit, once, however many jobs they have. Who can't claim it, and how it works on low pay.
The Employee Tax Credit (still called the PAYE credit on many payslips) is given to anyone whose income is taxed through PAYE. That includes wages and salary, taxed perks from work, work pensions and taxable social welfare payments. It is worth €2,000 in 2026. Budget 2027 raises it to €2,125, once Finance (No. 2) Bill 2026 is enacted.
| Year | Employee Tax Credit |
|---|---|
| 2022 | €1,700 |
| 2023 | €1,775 |
| 2024 | €1,875 |
| 2025 | €2,000 |
| 2026 | €2,000 |
| 2027 | €2,125 |
On low pay, it's capped at 20%
The credit can't be more than 20% of your PAYE income. Anyone earning €10,000 or more from PAYE income in 2026 gets the full amount. On €5,000 it would be €1,000.00.
One credit, however many jobs
You get one Employee Tax Credit in total, not one per job. If you have two jobs, Revenue gives your credits to your main employment unless you ask for them to be split. See tax on a second job.
Couples
If both spouses or civil partners have PAYE income, each gets their own credit. Unlike most credits, it can't be transferred between you, so a spouse with no PAYE income can't pass theirs over.
Who can't claim it
- a proprietary director (one who controls more than 15% of the company), and their spouse or civil partner, on pay from that company
- the spouse, civil partner or child of the person paying the income
- the spouse, civil partner or child of a partner in a partnership, on pay from the partnership
Children of proprietary directors can claim if they work full-time in the business (or earn at least €4,572 a year). They must also pay a qualifying class of PRSI and have PAYE correctly deducted.
The earned income credit
Some people can't claim the Employee Tax Credit, such as the self-employed and proprietary directors. They can claim the earned income credit, worth the same €2,000 in 2026. If you have both kinds of income, the two credits together can't exceed €2,000.
Work it out
Sources
- Revenue: Tax rates, bands and reliefs (checked 25/10/2026)
- Revenue: Earned Income Credit (checked 25/10/2026)
- Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.