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PAYE Tax Refunds
Updated Feb 2026

Common Reasons for Overpaying PAYE Tax in Ireland 2025

Thousands of PAYE workers in Ireland overpay tax every year, often without realizing it until they review their tax situation with a professional. The complexity of Ireland's tax system, combined with...

22 October 2025
3 min read

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Are you overpaying PAYE tax without realising it? Many Irish workers pay more tax than they should due to administrative errors, unclaimed reliefs, or changes in their circumstances. Understanding the common reasons for overpaying can help you identify if you're due a refund.

MyTaxRebate.ie specialises in finding these overpayments. Our average refund is over €900, with many clients receiving significantly more when multiple issues are identified and resolved.

Think You Might Be Overpaying?

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1. Emergency Tax

Emergency tax is the most common cause of significant overpayments. It occurs when:

  • You start a new job without your tax details being registered
  • You return to work after time abroad
  • Your employer hasn't received your Revenue Payroll Notification

After week 4 on emergency tax, you pay 40% on all income with no tax credits applied - potentially costing you hundreds per month.

2. Changing Jobs

When you change jobs, your tax credits and rate band cut-off don't always transfer correctly. This can result in:

  • Tax credits remaining with your old employer
  • Both employers using reduced credits
  • New employer using emergency tax rates

3. Unclaimed Tax Credits

Many tax credits require you to actively claim them. Commonly missed credits include:

Tax Credit Value
Rent Tax Credit Up to €1,000
Single Parent Child Carer Credit €1,900
Home Carer's Tax Credit up to €1,950

4. Medical Expenses Not Claimed

Tax relief on medical expenses is available at 20% but must be claimed. Many workers don't realise they can claim for:

  • GP visits and consultations
  • Prescribed medicines and treatments
  • Dental treatment (non-routine)
  • Physiotherapy and other therapies

5. Flat Rate Expenses

Many occupations are entitled to flat rate expense deductions that reduce taxable income. If you're not claiming yours, you're overpaying. Common examples:

6. Working From Home

Remote workers can claim tax relief on 30% of electricity, heating, and broadband costs proportionate to their work-from-home time. Most people don't claim this.

7. Part-Year Employment

If you only worked part of the year (started mid-year, were unemployed for a period, or left a job), you're entitled to your full year's tax credits. Often the PAYE system doesn't allocate these correctly.

How to Check If You're Overpaying

MyTaxRebate.ie reviews your complete tax history across all these areas:

  • 1.Submit your details in 2 minutes
  • 2.We review 4 years of tax records
  • 3.We identify all overpayments and unclaimed reliefs
  • 4.We file your claims with Revenue
  • 5.Refunds are paid directly to you

Frequently Asked Questions

How much could I be owed?

It depends on your circumstances. Emergency tax can result in refunds of €1,000-€5,000+. Unclaimed credits over several years can add up to similar amounts. The only way to know is to have your tax reviewed.

What if I'm not owed anything?

With MyTaxRebate.ie, you only pay if we get you a refund. If our review shows you're not owed anything, there's no charge.

Stop Overpaying Tax

Find out what you're owed with a free review

Start My Tax Review →

No refund, no fee • Takes 2 minutes • Average refund €900+

Filed under:PAYE Tax Refunds

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