Tax on side income alongside a job

Money from selling online, freelancing or content creation is taxable at your top rate. Under €5,000 of profit it goes on Form 12; above that, Form 11.

Think of freelancing at weekends, selling things you make, reselling online, affiliate links or sponsored posts. If it is done regularly to make a profit, it is probably a trade. The profit is taxable on top of your salary. Selling your own unwanted belongings now and then usually isn't.

Is it a trade?

Revenue uses the ‘badges of trade’. They are what you sell, how long you owned it and how often you sell. Revenue also looks at whether you improve or market it, why you sold, and your motive. No single sign decides it; the whole picture does. Payments in kind count too: products or free stays given in return for promotion are taxable at their value (Tax and Duty Manual 04-01-22).

How it is taxed

Your profit, income less costs wholly for the side work, is added to your pay. It is taxed at your highest income tax rate, with USC. PRSI Class S applies once your self-employed income reaches €5,000, with a minimum of €650 a year. For someone earning €48,000 in 2026:

The larger amount brings in Class S PRSI, which is why the share taken jumps.

Which return

• Side income after costs of €5,000 or less, and under €30,000 before costs: declare it on Form 12 in myAccount. Revenue usually collects the tax by reducing your tax credits for the following year.
• Above either limit: you are a chargeable person (someone who files their own tax return). Register for self-assessment and file Form 11, paying preliminary tax.

Renting a room

Letting rooms in your own home is different. Income up to €14,000 a year is tax-free under rent-a-room relief. This rises to €16,000 in 2027 under Budget 2027, once Finance (No. 2) Bill 2026 is enacted. Short-term lets such as holiday rentals don't qualify.

To see the tax on your own side income, use the side income calculator. For what you can deduct, see self-employed expenses.

Work it out

• Tax on side income →
• Self-employed expenses and what they save →
• Rent-a-Room Relief →

Sources

• Revenue: Who should register for Income Tax self-assessment? (€5,000 net or €30,000 gross non-PAYE income) (checked 24/10/2026)
• Revenue: Tax and Duty Manual Part 04-01-22: income from social media and online platforms (badges of trade) (checked 16/10/2026)
• Revenue: Claiming a deduction for expenses (business and private use, what can't be claimed) (checked 16/10/2026)
• Department of Social Protection: PRSI Class S Rates (checked 16/10/2026)
• Revenue: Earned Income Credit (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.