Ireland taxes in 2026: the whole system in one page

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

You are moving to Ireland, leaving it, or running a business from it. This page gives you the whole Irish tax system for 2026 in one place, then points you to the detailed guide for each topic.

Ireland tax landscape in 2026: the key figures

What changed for 2026

• Capital gains tax fell from 33% to 31%. The cut applies to disposals made on or after 7 October 2026. Development land stays at 33%.
• Expat reliefs were reset. For arrivals after 1 January 2026, SARP applies to income over €125,000, not €100,000. The Foreign Earnings Deduction cap rose from €35,000 to €50,000.
• Restaurant meals and hairdressing moved to 9% VAT on 1 July 2026, down from 13.5%, per Revenue.
• Gift and inheritance thresholds rose on 7 October 2026. Budget 2027 also set new income tax bands and credits from 1 January 2027, and a cut in fund exit tax from 38% to 35%.

Is this guide for you?

Read on if you…

• are planning a move to Ireland and want the full picture before you sign a lease;
• are already in Ireland as a freelancer, employee or founder and want to check your setup;
• are comparing Ireland with another base, such as Malta or Austria.

Probably not your case if you…

• need the detailed rules on a single topic – jump to the Ireland tax guides list below;
• only visit Ireland on short holidays and earn nothing there.

How does the Irish tax system work?

Ireland taxes on residence. If you are resident, you pay Irish tax on your worldwide income, subject to the domicile rules below. If you are not, you pay only on Irish-source income.

Revenue, the Irish Revenue Commissioners, collects the main taxes. The core law is the Taxes Consolidation Act 1997 (TCA 1997), updated by a Finance Act after each October budget.

When do you become resident?

Revenue's page on tax residence sets two tests. You are resident if you spend:

1. 183 days or more in Ireland in the tax year; or
2. 280 days or more in total across the current and the preceding tax year.

If you are here 30 days or fewer in a tax year, you are not resident for that year. Any part of a day in Ireland counts as a day, apart from time airside or delays that were unforeseen and unavoidable.

The full rules sit in tax residency in Ireland.

Residence, ordinary residence and domicile

Ireland uses three concepts. Here's the short version:

• Residence: your status for one tax year, based on days.
• Ordinary residence: you become ordinarily resident from the start of the fourth year after three consecutive resident years. After you leave, it continues for three consecutive tax years.
• Domicile: your permanent home in the legal sense. A resident who is not Irish-domiciled pays tax on Irish income, and on foreign investment income only to the extent it is remitted (brought into Ireland), under section 71(2) TCA 1997. Pay for work done in Ireland is always taxed.

Revenue's page on ordinary residence adds one threshold. During those three years, other foreign income such as investment income is outside the net only if it is €3,810 or less. Above that, the whole amount is taxable.

What are the main taxes in Ireland?

Income tax in practice

For a single person, the first €44,000 is taxed at 20% and the rest at 40%. Revenue's rate table gives €53,000 at 20% for a married couple with one income. Two incomes get the same band plus an increase of up to €35,000, capped at the lower earner's income.

Tax credits then reduce the bill. The personal credit is €2,000 for a single person and €4,000 for a married person. The employee credit and the earned income credit are €2,000 each.

Here's the catch. USC applies on top. Above €70,044 your marginal rate is 40% plus 8% USC, plus social insurance. For the self-employed, that is about 52%. Non-PAYE income above €100,000 adds a 3% USC surcharge, so about 55%. Our guide to personal tax deductions and benefits in Ireland lists the credits you can claim.

Budget 2027 raises the bands and credits for 2027. The single band goes to €46,500, and the personal, employee and earned income credits go to €2,125. These changes do not apply to your 2026 bill.

USC and PRSI

USC is charged on total income if it exceeds €13,000. The 2026 standard USC rates are 0.5% on the first €12,012, 2% on the next €16,688, 3% on the next €41,344 and 8% on the rest.

The self-employed pay Class S PRSI. The rate is 4.2% to 30 September 2026 and 4.35% from 1 October, or €650 if that is higher. The department's page gives a blended 2026 rate of 4.2375%.

Capital gains and other taxes

Gains on shares, crypto and property pay CGT at 31% for disposals on or after 7 October 2026, according to Revenue. Each person gets a €1,270 annual exemption that cannot be transferred to a spouse.

Non-residents pay CGT only on Irish land, buildings, minerals, exploration rights and certain unquoted shares. Budget 2027 also announces a cut in the exit tax on funds, ETFs and life assurance from 38% to 35%. The legislation is still to come, so check the effective date before you invest.

See capital gains tax in Ireland and specific taxes in Ireland for property, stamp duty and the rest.

Gifts and inheritances

Capital Acquisitions Tax is 33%, paid by the person who receives the gift or inheritance. For benefits taken on or after 7 October 2026, the tax-free thresholds are €420,000 for Group A, €44,000 for Group B and €22,000 for Group C.

VAT

Revenue lists a standard rate of 23%, a reduced rate of 13.5%, a second reduced rate of 9% and a livestock rate of 4.8%. From 1 July 2026 the 9% rate also covers restaurant and catering supplies, hot take-away food and hairdressing.

You must register for VAT once turnover passes €42,500 for services or €85,000 for goods in any continuous 12-month period, as PwC's summary confirms.

What special regimes exist for newcomers?

Ireland has no flat-tax regime. What it offers is narrower:

• SARP (Special Assignee Relief Programme): 30% of income over a threshold is exempt from income tax, up to a €1,000,000 income limit, for up to five consecutive years. For arrivals after 1 January 2026 the threshold is €125,000. Your employer must assign you to Ireland, and the relief covers assignments in tax years 2012 to 2030, according to Revenue's SARP page. For 2026 arrivals, if employer certification comes after 90 days but within 180, you lose the first year and the maximum falls to four years.
• Foreign Earnings Deduction (FED): for residents who work abroad temporarily, capped at €50,000 from 1 January 2026, according to Revenue.
• Remittance basis: foreign investment income of residents who are not Irish-domiciled is taxed only when brought into Ireland.
• Start-up relief for companies: full relief if corporation tax is €40,000 or less, and partial relief up to €60,000, for the first five years of trading. Budget 2027 extends it to 31 December 2030.

Details and conditions are in tax incentives for expats and digital nomads in Ireland.

Moving to Ireland: what to do

1. Before you move: check your immigration route and model your residence date against the 183- and 280-day tests.
2. On arrival: get a PPS number, your Personal Public Service number, and register for Revenue's myAccount.
3. First months: employees register the job so payroll applies credits. Self-employed people register for income tax and, above the thresholds, VAT.
4. First return: work out whether the remittance basis or any arrival-year relief applies to you.

The step-by-step version is in our practical guide to obtaining your tax residency in Ireland.

Moving out of Ireland: what to know

You stay ordinarily resident for three consecutive tax years after you leave. During that time, Irish tax can still reach your worldwide income, with exceptions. Foreign trade income with no work in Ireland and foreign employment income with all duties abroad are outside the net. Other foreign income is outside it only up to €3,810.

Plan your exit with the practical guide to ceasing your tax residency in Ireland. Check international tax treaties of Ireland too. Revenue says Ireland has tax treaties with more than 70 countries.

Running a business from Ireland

Sole trader

You register for income tax and file Form 11 by 31 October of the following year. The 2025 return is due on 31 October 2026, or 18 November 2026 if you pay and file on ROS (Revenue Online Service). Profits pay income tax, USC and Class S PRSI.

Late filing triggers a surcharge of 5% of the tax (max €12,695) within two months, and 10% (max €63,485) after that.

Limited company

A company pays 12.5% on trading income and 25% on non-trading income. A company incorporated in Ireland on or after 1 January 2015 is Irish tax resident, unless a treaty gives residence elsewhere. A foreign company managed and controlled from Ireland is Irish resident too.

Close companies, controlled by five or fewer participators, face a 20% surcharge on undistributed estate and investment income, and 15% on half of undistributed trading income for close service companies.

Compare the structures in legal forms of business in Ireland, corporate income tax in Ireland and business expenses in Ireland.

Common mistakes (and what they cost)

• Comparing only the 40% rate → you underestimate your marginal rate by about 12 points once USC and PRSI apply.
• Assuming you stop being taxed the day you leave → ordinary residence keeps parts of your foreign income in the Irish net for three tax years.
• Missing the Form 11 deadline → a 5% surcharge, rising to 10% after two months, plus interest.
• Running a foreign company from Dublin → it can become Irish tax resident and pay Irish corporation tax on all its profits.
• Using the old 33% CGT rate in your planning → for disposals from 7 October 2026 you would overestimate the bill by two points of the gain.

Frequently asked questions

How is income taxed in Ireland in 2026?

Income tax is 20% on the first €44,000 for a single person and 40% above, reduced by credits such as the €2,000 personal credit and the €2,000 employee or earned income credit. USC of 0.5% to 8% applies on top, plus PRSI. For the self-employed, the top combined marginal rate is about 52%.

Does Ireland tax worldwide income?

Yes, if you are resident, with a domicile exception. A resident who is not Irish-domiciled pays on Irish income and on foreign investment income only to the extent it is remitted to Ireland. Non-residents pay only on Irish-source income. Your status depends on the 183-day and 280-day tests.

Is Ireland a low-tax country?

For companies, partly: trading profits pay 12.5%. For individuals, no. Income above €44,000 faces income tax of 40%, USC of up to 8% and PRSI. Capital gains pay 31% from 7 October 2026. Ireland's appeal for individuals comes from targeted reliefs such as SARP, not from low headline rates.

When is the Irish tax return due?

Self-assessed taxpayers file Form 11 by 31 October of the year after the tax year. The 2025 return is due on 31 October 2026, so 2026 income is due by 31 October 2027. Pay and file on ROS usually brings a later date: for the 2025 return, it is 18 November 2026. Preliminary tax is paid by 31 October of the tax year.

What is the corporate tax rate in Ireland?

Trading income of Irish companies is taxed at 12.5% in 2026. Non-trading income, such as rent and investment income, and income from excepted trades are taxed at 25%. Close companies can face extra surcharges on undistributed income. Residence follows incorporation and where the company is managed and controlled.

Does Ireland have inheritance tax?

Yes, through Capital Acquisitions Tax at 33%, paid by the person receiving. For benefits taken on or after 7 October 2026, the tax-free threshold is €420,000 for Group A, €44,000 for Group B and €22,000 for Group C. Which group applies depends on your relationship to the giver.

Ireland tax guides

• Tax residency in Ireland – the 183- and 280-day tests, ordinary residence and domicile.
• How to obtain tax residency in Ireland – PPS number, registration and your arrival-year steps.
• How to cease your Irish tax residency – leaving cleanly and the ordinary residence tail.
• Tax incentives for expats and digital nomads in Ireland – SARP, the remittance basis and the Foreign Earnings Deduction.
• Personal tax deductions and benefits in Ireland – tax credits, pension relief and everyday reliefs.
• Capital gains tax in Ireland – the 31% rate, exemptions and how to pay less.
• Cryptocurrency taxes in Ireland – disposals, swaps, staking and record keeping.
• Specific taxes in Ireland – VAT, stamp duty, property and other levies.
• Legal forms of business in Ireland – sole trader, partnership, LTD and DAC compared.
• Corporate income tax in Ireland – 12.5%, 25% and company residence.
• Business expenses in Ireland – what you can deduct and capital allowances.
• International tax treaties of Ireland – double tax treaties and tie-breaker rules.
• Tax fraud regulations of Ireland – offences, penalties and qualifying disclosures.

Related guides

• Your tax guide to Malta
• Tax landscape overview of Austria
• Tax residency rules in Ireland
• Expat tax incentives in Ireland
• Ireland's tax treaties
• All country tax guides

Sources

• Tax rates, bands and reliefs – Revenue Commissioners
• Standard rates and thresholds of USC – Revenue Commissioners
• Tax residence – Revenue Commissioners
• Capital Gains Tax – Revenue Commissioners
• Budget 2027 tax policy changes – Department of Finance
• PRSI, pay related social insurance – Department of Social Protection
• Second reduced rate of VAT – Revenue Commissioners
• Ireland other taxes, VAT – PwC Worldwide Tax Summaries (secondary)

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