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Updated Dec 2025

How Does Tax Work in Ireland? Tax System Explained 2025

Complete explanation of the Irish tax system. PAYE, USC, PRSI, tax credits and more.

14 November 2025
1 min read

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The Irish tax system uses PAYE (Pay As You Earn) for most workers. Your employer deducts tax before you receive your pay.

📊 Irish Tax System

  • Income tax: 20% (standard) & 40% (higher)
  • USC: 0.5% to 8% depending on income
  • PRSI: 4% for most workers
  • Tax credits: Reduce your tax bill

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