What is the standard rate cut-off point?

The amount of income taxed at 20%: €44,000 for a single person in 2026 (€46,500 in 2027). Income above it is taxed at 40%.

How do tax credits work?

Credits are taken off the income tax worked out at 20% and 40%, euro for euro. A single employee gets €4,000 in 2026 (€2,000 personal and €2,000 employee), so the first €20,000 of pay has no income tax.

What's the difference between my effective and marginal rate?

Your effective rate is all your tax, USC and PRSI divided by your pay. Your marginal rate is what you'd pay on your next euro: about 52% above the 20% band (40% + 3% or 8% USC + 4.2% PRSI).

Explained

How your tax is calculated

Your pay, step by step: the 20% band, the 40% rate, tax credits, USC bands and PRSI, with the arithmetic for each.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

What is the standard rate cut-off point?: The amount of income taxed at 20%: €44,000 for a single person in 2026 (€46,500 in 2027). Income above it is taxed at 40%.
How do tax credits work?: Credits are taken off the income tax worked out at 20% and 40%, euro for euro. A single employee gets €4,000 in 2026 (€2,000 personal and €2,000 employee), so the first €20,000 of pay has no income tax.
What's the difference between my effective and marginal rate?: Your effective rate is all your tax, USC and PRSI divided by your pay. Your marginal rate is what you'd pay on your next euro: about 52% above the 20% band (40% + 3% or 8% USC + 4.2% PRSI).

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