Specific taxes in Ireland: what you pay beyond income tax, and how to pay less

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You live in Ireland, or plan to, and the income tax rates are only half the picture. This guide walks you through every other tax you are likely to meet in 2026, what each one really costs, and the legal ways to keep the bill down.

Ireland specific taxes in 2026: the key figures

Is this guide for you?

Read on if you…

• are self-employed in Ireland and want to know what USC and PRSI add to your income tax;
• are buying property, receiving an inheritance or holding savings in Ireland;
• are comparing Ireland with other countries and need the full tax cost, not just the headline rate.

Probably not your case if you…

• only need the income tax bands and credits – see our Ireland tax landscape overview;
• are selling shares, crypto or property and want the 33% CGT rules – see capital gains tax in Ireland.

What do USC and PRSI add to your income tax?

Here's the catch. Ireland's income tax rates look moderate at 20% and 40%. But two more charges sit on the same income.

Universal Social Charge

USC is a tax on gross income, with almost no deductions. Pension contributions do not reduce it. The 2026 bands are:

If your total income is €13,000 or less, you pay no USC at all. Medical card holders and people over 70 with income up to €60,000 pay at most 2%.

PRSI

PRSI is Pay Related Social Insurance – the contribution that funds your State Pension, illness and jobseeker benefits. Employees pay Class A, the self-employed Class S.

For the self-employed, the rate was 4.2% from 1 October 2025. It rises again on 1 October 2026 under the government's pension funding roadmap, so 2026 uses a blended rate. There is no upper limit. If your income is below €5,000, you pay nothing. Employers pay 11.25% on most salaries.

Good news: PRSI contributions build your entitlement to the Irish State Pension. Contributions in other EU countries count too.

Which taxes hit your savings and investments?

Ireland taxes passive income hard, and mostly at source.

• DIRT (Deposit Interest Retention Tax): 33% on interest from Irish banks and credit unions, deducted automatically. Foreign interest goes on your return at the same rate.
• Dividend Withholding Tax: 25% withheld on dividends from Irish companies. It is a credit against your final bill, which can reach 52% with USC and PRSI.
• Exit tax on funds: Irish and EU funds and most ETFs are taxed at 38% from 1 January 2026, including a deemed sale every eight years.
• Capital gains: 33% on shares, crypto and property, after a €1,270 annual exemption.

Honestly? For most people with investments, the fund rules are the biggest surprise. Read capital gains tax in Ireland and cryptocurrency taxes in Ireland before you buy an ETF.

What do you pay when you buy property or receive a gift?

Stamp duty

Stamp duty is a one-off tax on buying property or shares. The buyer pays it.

You file and pay through Revenue's online stamp duty system within 44 days of signing.

Local Property Tax

Local Property Tax (LPT) is an annual charge on Irish residential property, paid by the owner. It is based on the property's value band. A revaluation applies from 2026, with new bands set by your November 2025 self-assessed value. Local councils can vary the rate by up to 15% either way.

Capital Acquisitions Tax

Capital Acquisitions Tax (CAT) covers gifts and inheritances. The person receiving pays 33% on value above a lifetime threshold:

1. Group A – €400,000: from a parent, including some foster parents.
2. Group B – €40,000: from a brother, sister, grandparent, niece, nephew or grandchild.
3. Group C – €20,000: from anyone else.

Gifts and inheritances between spouses or civil partners are fully exempt. Each person can also receive €3,000 a year from each donor tax-free.

Which other taxes should you know about?

• VAT: 23% standard rate. 13.5% applies to fuel, building work and some repairs. 9% applies to newspapers, sports facilities and, from 1 July 2026, food and catering services. Basic food and children's clothes are at 0%.
• Carbon tax: €78.50 per tonne of CO2 in 2026, built into fuel prices.
• Vehicle Registration Tax: 7% to 41% of a car's value, based on CO2 emissions. It hits you hard if you import a car.
• Domicile levy: a flat €200,000 for Irish-domiciled people with worldwide income over €1 million and Irish property worth over €5 million.
• Vacant Homes Tax: seven times your LPT on homes occupied fewer than 30 days a year.

How can you pay less, legally?

1. Use the USC exemptions. If your income is near €13,000 in a gap year, keep it under that line.
2. Use the €3,000 small gift exemption every year. Two parents can give each child €6,000 a year with no CAT.
3. Plan inheritances early. Business and agricultural reliefs can reduce the taxable value of qualifying assets by 90%.
4. Hold savings outside DIRT products where it makes sense. Irish government savings products from the State Savings scheme are tax-free.
5. Check your residence before receiving income. Your tax residency in Ireland decides whether USC and PRSI apply to foreign income.

Common mistakes (and what they cost)

• Budgeting only for income tax → a self-employed person on €80,000 is short about €5,800 of USC and PRSI at filing time.
• Forgetting foreign bank interest → it is taxable at 33%, and Revenue receives it through automatic exchange of information.
• Buying an EU ETF without knowing the 8-year rule → you pay 38% on gains you have not cashed in.
• Ignoring the €3,000 small gift exemption → unused years are lost and later gifts eat into the lifetime threshold.
• Filing stamp duty late → interest and surcharges start after 44 days, even if the sale was simple.

Frequently asked questions

What is USC in Ireland and who pays it?

Universal Social Charge is a separate tax on gross income, charged on top of income tax. In 2026 you pay 0.5%, 2%, 3% and 8% across four bands. If your total income is €13,000 or less, you pay nothing. Self-employed income above €100,000 carries an extra 3%. Medical card holders and people over 70 earning up to €60,000 pay at most 2%.

How much PRSI does a self-employed person pay in Ireland?

Self-employed people pay Class S PRSI on all their income, with no ceiling. The rate was 4.2% from October 2025 and rises again in October 2026, so 2026 uses a blended rate. If your income is under €5,000 you pay nothing. A minimum contribution applies once you are in the system, and it buys your State Pension and other benefits.

Is there a wealth tax in Ireland?

No. Ireland has no annual wealth tax on your net worth. The closest thing is the domicile levy, a flat €200,000 charge for Irish-domiciled people with worldwide income over €1 million and Irish property worth more than €5 million. Local Property Tax also hits homeowners every year, but it is based on one property's value, not total wealth.

How much is stamp duty on a house in Ireland in 2026?

For residential property, stamp duty is 1% on the first €1 million, 2% on the slice up to €1.5 million and 6% above that. A €450,000 home therefore costs €4,500 in stamp duty. Commercial property and land pay 7.5%. The buyer pays, and the return must be filed through Revenue's online system within 44 days of signing.

Does Ireland tax gifts and inheritances?

Yes, through Capital Acquisitions Tax at 33%. The recipient pays, not the giver. Lifetime tax-free thresholds depend on the relationship: €400,000 from a parent, €40,000 from a sibling, grandparent or other close relative, and €20,000 from anyone else. Each donor can also give you €3,000 a year completely tax-free, and spouses are fully exempt.

What is DIRT tax in Ireland?

DIRT is Deposit Interest Retention Tax, charged at 33% on interest from Irish bank and credit union accounts. Your bank deducts it automatically, so you usually have nothing to declare. Interest from foreign accounts is not covered by DIRT and must go on your tax return, where it is also taxed at 33% plus possible USC and PRSI.

Related guides

• The Irish tax system in one page
• Capital gains tax in Ireland: rates and reliefs
• How crypto is taxed in Ireland
• Personal tax credits and reliefs in Ireland
• When you become tax resident in Ireland
• Specific taxes in the United Kingdom
• All country tax guides

Sources

• Revenue – Irish Tax and Customs
• Irish Statute Book – Taxes Consolidation Act 1997 and Finance Acts
• Citizens Information – Tax
• Government of Ireland – Budget 2026
• PwC Worldwide Tax Summaries – Ireland (secondary cross-check)

This guide is general information, not personalised tax advice. See how we research and review.