Glossary · PAYE and payroll
Income tax
Tax on income at 20% up to your rate band and 40% above it, less your tax credits.
Income tax is charged at 20% on income up to your standard rate cut-off point and 40% above it. A single person's cut-off is €44,000 in 2026 and €46,500 in 2027.
Tax credits are then subtracted from the tax, euro for euro. They can't take it below zero.
Work it out
Related terms
Standard rate cut-off point · Tax credit · Marginal tax rate · Universal Social Charge (USC) · PRSI
All terms · General information, not tax advice.