Tax in Ireland
If you are coming to live in Ireland, depending on your personal circumstances, there are different taxes which you may have to pay. The Revenue Commissioners, also known as Revenue, are the government body who assess and collect taxes and duties in Ireland. You need to have a Personal Public Service Number (PPS number) when taking up employment or self-employment.
Employees and self-employed people aged under 66 pay social insurance (PRSI) contributions in addition to taxes.
Tax on income
Nearly all income is liable to tax. The first part of your income, up to a certain amount, is taxed at the standard rate of tax. The remainder of your income is taxed at the higher rate of tax. You can read more in our document on how your income tax is calculated.
Employees have income tax deducted from their pay under the Pay As You Earn (PAYE) system by their employer. You can read more in our document on tax and starting work. Employees who have income from other sources must pay tax on this.
Self-employed people pay income tax under the self-assessment system on the profits from their business and on any other income that they have. Read more in our document on tax and self-employed people.
Reducing your tax
Tax credits and reliefs reduce the amount of tax you have to pay. Tax is calculated as a percentage of your income. Your tax credits are deducted from this to give the amount of tax that you have to pay, for example, your personal tax credit. In some cases you can get relief for specific expenses, for example, medical expenses. You can read more in our document on tax credits and reliefs.
Universal Social Charge
The Universal Social Charge (USC) is a tax on your income that is charged on your gross income before any pension or PRSI contributions are deducted. Find out more in our document on the Universal Social Charge.
You may have to pay Capital Acquisitions Tax on any gift or inheritances that you receive. If you own a residential property in Ireland you are liable for payment of Local Property Tax. If you earn interest on savings then you pay a tax on the interest called Deposit Interest Retention Tax (DIRT).
In general, if you buy a new car or if you import a car into Ireland, it is liable for Vehicle Registration Tax (VRT) and must be registered with Revenue. You must also pay motor tax if you want to drive your vehicle in a public place.
Your liability for tax in Ireland can be affected by whether you are resident in the country and whether Ireland is your permanent home. Generally you will be charged Irish tax on your world-wide income earned or arising in a tax year during which you are resident, ordinarily resident or domiciled in Ireland for tax purposes. You can read more in our document on tax residence and domicile.
As a particular item of income can be taxable in both the country where it is sourced and also in the country in which you, as the recipient, are resident, Ireland has a number of double taxation agreements with other countries in order to avoid double taxation. Find out more in our document on coming to live in Ireland and tax.
A guide to the Irish tax system for people who are moving to Ireland is available on the Revenue website, revenue.ie.
For more information you can contact your tax office.