Moving to Ireland
UK and Irish salaries compared: how the tax systems differ
Last updated 16 October 2026
Ireland takes a smaller share of lower salaries than the UK, and a larger share from middle incomes up. How the two tax systems compare.
If you are weighing a job in Ireland against one in the UK, the headline salaries aren't comparable until you take off each country's taxes. The two systems are built differently, so the gap changes with income.
The building blocks
| Ireland, 2026 | UK (not Scotland), 2026–27 | |
|---|---|---|
| Tax-free starting point | Credits of €4,000 off the tax bill | Personal allowance of £12,570, lost gradually above £100,000 |
| Basic rate | 20% up to €44,000 | 20% up to £50,270 |
| Higher rate | 40% on the rest | 40%, then 45% above £125,140 of taxable income |
| Second charge | USC: 0.5% to 8% on all income over €13,000 | None |
| Social insurance | PRSI: 4.2% (4.35% from October) on all pay over €352 a week | National Insurance: 8% above £12,570, 2% above £50,270 |
Same number, different currency
Leaving the exchange rate aside, here is the share of the same salary taken by tax in each country, for a single employee:
| Salary | Ireland: € taken | UK: £ taken |
|---|---|---|
| 30,000 | 12.3% | 16.3% |
| 50,000 | 20.7% | 21% |
| 75,000 | 29.9% | 27.9% |
| 120,000 | 38.3% | 36.5% |
On lower salaries Ireland takes a smaller share. Its credits wipe out the tax on the first slice of income, and its low USC rates are lighter than National Insurance. From middle incomes up, Ireland takes more: its 40% rate starts at a lower income and USC adds up to 8%. Above £100,000 the UK withdraws the personal allowance, which creates an effective income tax rate of 60% on part of the income. The 45% rate applies from about £125,000, so the gap narrows.
Converting
To compare real offers, convert the UK take-home to euro at a current rate, such as the Central Bank of Ireland's published reference rates. Exchange rates move, so check how sensitive the answer is to a few cents either way. Then allow for the cost of rent, childcare and transport where you would live.
Things a pure tax comparison misses
- Scotland has its own income tax bands, with rates from 19% to 48%.
- Pension contributions and workplace benefits are taxed differently in each system.
- If you live in Ireland and work in Northern Ireland, see Transborder Workers' Relief.
- If you are moving here, see your first year's tax in Ireland.
Work it out
Sources
- HM Revenue & Customs: Income Tax rates and allowances for current and previous tax years (checked 25/10/2026)
- HM Revenue & Customs: National Insurance rates and categories: contribution rates (checked 25/10/2026)
- Revenue: Tax rates, bands and reliefs (checked 25/10/2026)
- Revenue: Standard rates and thresholds of USC (checked 25/10/2026)
- Department of Social Protection: PRSI 2026 Contribution Rates and User Guide (SW 14) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.