Employee (PAYE)

• Income tax 2026: 20% up to the standard rate cut-off point (44,000 EUR single; 53,000 EUR married or civil partnership, one earner), 40% above. Budget 2026 made no changes to income tax bands or credits.
• Tax credits (non-refundable): Personal Tax Credit 2,000 EUR single or 4,000 EUR married, plus the Employee (PAYE) Tax Credit - the lower of 2,000 EUR and 20% of PAYE income.
• Universal Social Charge (USC) 2026: 0.5% on the first 12,012 EUR, 2% up to 28,700 EUR (ceiling raised from 27,382 EUR by Budget 2026), 3% up to 70,044 EUR, 8% above. No USC at all when total income does not exceed 13,000 EUR.
• Employee PRSI (Class A): 4.2% of gross. No PRSI when weekly earnings do not exceed 352 EUR. The tapered PRSI credit for weekly earnings between 352.01 and 424 EUR is not modelled, so PRSI is slightly overstated in that band.
• Employer cost: employer PRSI (Class A) on top of salary - 9.0% when weekly earnings are at or below 552 EUR, 11.25% above.
• PRSI rates rise on 1 October 2026 under the PRSI roadmap (employee 4.35%, employer 9.15% and 11.40%). This calculator uses the 1 January - 30 September 2026 rates for the whole year and flags the change instead of blending.
• Out of scope: benefit in kind, pension contributions and relief, tax credits beyond Personal and Employee (e.g. rent, home carer), week 1 basis and emergency tax, reduced USC rates for full medical card holders and people aged 70 or over, and joint assessment beyond the one-earner cut-off.

Proprietary director (sub-option)

• A proprietary director is a director who controls, directly or indirectly, more than 15% of the company's ordinary share capital (section 472 TCA 1997). Their salary is still Schedule E income and PAYE withholding still operates on it through payroll.
• Tax credits: a proprietary director cannot claim the Employee (PAYE) Tax Credit. The Earned Income Credit applies instead - the lower of 2,000 EUR and 20% of earned income in 2026. The two credits use the same formula this year, so the income tax result is the same; only the credit changes.
• PRSI: Class S instead of Class A - 4.2% of gross (4.35% from 1 October 2026; flagged, not blended), with a minimum annual contribution of 650 EUR and liability from 5,000 EUR of income. Unlike Class A, there is no nil band below 352 EUR per week, so the 650 EUR minimum can apply on a low salary where an employee would pay nothing.
• Employer PRSI: none. Class S salaries carry no employer PRSI, so the total employer cost equals the gross salary.
• USC: the normal employee bands apply. The 3% USC surcharge is charged only on non-PAYE income above 100,000 EUR; a proprietary director's salary is PAYE income, so the surcharge is not applied in this model.
• Classification caveat: the Department of Social Protection treats directors owning 50% or more of a company as Class S; for shareholdings between 15% and 50% the PRSI class is decided case by case by the DSP Scope section. This calculator assumes Class S whenever the sub-option is selected.
• Out of scope: directors who also have separate self-employment income (the combined Employee + Earned Income credit interaction), dividends and distributions, close company surcharges, and benefit in kind on directors' loans.

Sources: Revenue - Tax rates, bands and reliefs, Revenue - Standard rates and thresholds of USC, Revenue - Employee Tax Credit, Revenue - Earned Income Credit, Revenue - Other rates of USC (3% surcharge), gov.ie - PRSI Contribution Rates and User Guide (SW14), gov.ie - PRSI Class S rates, Citizens Information - Budget 2026.

Self-employed (sole trader)

• Net business profit = revenue - expenses, taxed under self-assessment at the same 20% / 40% rates and cut-off points as an employee.
• Tax credits: Personal Tax Credit (2,000 EUR single / 4,000 EUR married) plus the Earned Income Credit - the lower of 2,000 EUR and 20% of earned income (instead of the Employee credit).
• USC uses the same bands plus a 3% surcharge on non-PAYE income above 100,000 EUR (an effective 11% on that portion).
• PRSI Class S: 4.2% of income or the minimum annual contribution of 650 EUR, whichever is greater. Compulsory Class S applies from 5,000 EUR of self-employed income; below that, no PRSI is charged in this model. The rate rises to 4.35% on 1 October 2026 (flagged, not blended).
• Out of scope: preliminary tax timing, capital allowances, loss relief, pension relief, VAT (2026 registration thresholds 42,500 EUR services / 85,000 EUR goods), and credits beyond Personal and Earned Income.

Revenue - Earned Income Credit, gov.ie - PRSI Class S rates, Revenue - Standard rates and thresholds of USC.