How to Avoid Emergency Tax

Starting a new job in Ireland should be an exciting milestone, but for thousands of workers each year, it quickly becomes a financial headache when emergency tax kicks in. If you've noticed your first few pay slips showing significantly less take-home pay than expected, you're likely one of the many Irish employees caught in the emergency tax trap. The good news? Emergency tax is completely avoidable with the right preparation, and if you've already been affected, you're typically entitled to a refund of €500 to €1,500.

What Exactly Is Emergency Tax and Why Does It Happen?

Emergency tax is a temporary tax code that Revenue applies when they don't have the proper information about your tax credits and rate bands. This typically occurs when you start a new job without providing your employer with either a P45 from your previous employer or a Tax Credit Certificate (formerly known as a Job Registration Form).

When Revenue doesn't receive notification about your new employment, they can't allocate your tax credits properly. Instead, your employer must apply emergency tax rates, which follow a specific pattern over different weeks of employment. Understanding this pattern is crucial for knowing what to expect and how to stop it quickly.

The Critical Steps to Avoid Emergency Tax

1. Always Obtain Your P45 When Leaving Employment

Your P45 is your passport to seamless tax treatment when starting a new job. This document contains vital information including your total pay and tax deducted in the current year, your tax credits, and your cut-off point. Your previous employer is legally obligated to provide you with a P45, typically within a few days of your employment ending.

Never start a new position without requesting and receiving your P45. If there's any delay, contact your former employer's payroll department immediately. If they're unresponsive, you have the right to contact Revenue directly for assistance in obtaining this document.

2. Register Your New Job with Revenue Before Starting

If you don't have a P45—perhaps this is your first job, you're returning to work after a break, or you've lost the document—you must register your new employment with Revenue. You can do this through your myAccount online, which is the fastest method and usually processes within 2-3 working days.

When you register, Revenue will issue a Tax Credit Certificate and send it directly to your new employer. This certificate shows your tax credits (€1,875 standard personal credit for 2025, plus any additional credits you're entitled to) and your standard rate cut-off point (€42,000 for single individuals in 2025).

3. Give Your Employer Proper Documentation on Day One

Provide your P45 or Tax Credit Certificate to your new employer's payroll department on your first day, or even before if possible. Don't wait until your first payday—by then, you may already be on emergency tax. Most employers need this information before processing their first payroll that includes you as an employee.

If you've registered your job with Revenue but haven't received the certificate yet, inform your payroll department and give them the reference number. They can sometimes contact Revenue directly to expedite the process.

Real-World Examples: The Cost of Emergency Tax

Example 1: Sarah's Four-Week Emergency Tax Period

Sarah started a new job earning €45,000 annually (€3,750 per month) but couldn't provide her P45 for four weeks. Under emergency tax for the first four weeks, she paid 20% on all her income without any tax credits:

• Monthly gross pay: €3,750
• Emergency tax paid: €750 (20% of €3,750)
• Normal tax (with credits): €469.83
• Overpayment: €280.17 per month × 1 month = €280.17 refund due

Even one month on emergency tax cost Sarah over €280 in unnecessary deductions. You can learn more about how long refunds take in our guide on emergency tax refund processing times.

Example 2: Michael's Extended Emergency Tax Situation

Michael started a job earning €35,000 annually (€2,916.67 per month) but didn't realize he needed to register with Revenue. He remained on emergency tax for three months, with the rate increasing to 40% after week four:

• Month 1 (20% emergency rate): €583.33 tax paid vs €330.66 normal tax = €252.67 overpaid
• Month 2 (40% emergency rate): €1,166.67 tax paid vs €330.66 normal tax = €836.01 overpaid
• Month 3 (40% emergency rate): €1,166.67 tax paid vs €330.66 normal tax = €836.01 overpaid
• Total refund due: €1,924.69

Michael's situation demonstrates why it's critical to act quickly when starting a new job. For more information about emergency tax in new employment, visit our comprehensive emergency tax guide for new jobs in Ireland.

Example 3: Jennifer's Multiple Jobs Scenario

Jennifer took on a second job while keeping her primary employment. She didn't realize that taking on additional employment requires updating Revenue with your job details. Her second job (earning €1,500 per month) was placed on emergency tax for two months:

• Month 1 emergency tax: €300 (20% of €1,500)
• Month 2 emergency tax: €600 (40% of €1,500)
• Total overpayment: €900 (exact refund depends on her overall tax situation and available credits)

When dealing with multiple employments, the tax situation becomes more complex, making professional assistance even more valuable for ensuring you claim every euro you're entitled to.

What to Do If You're Already on Emergency Tax

If you've already found yourself on emergency tax, don't panic—but do act quickly to minimize the damage:

1. Contact Revenue immediately through myAccount or by phone to register your employment if you haven't already done so.
2. Provide documentation to your employer as soon as your Tax Credit Certificate is issued.
3. Check your payslips to see exactly how much emergency tax you've paid over what period.
4. Seek professional help to ensure you receive your full refund and that all tax credits have been properly applied going forward.

For a complete understanding of the refund process, review our emergency tax Ireland refund guide, which explains exactly what you're entitled to and how to claim it efficiently.

Special Situations That Require Extra Attention

Starting Your First Job

If you've never worked in Ireland before, you won't have a P45. Register with Revenue at least one week before your start date. You'll need your PPS number and details of your new employer (which your employer should provide). Revenue will issue a Tax Credit Certificate showing your standard employee credit of €1,875 for 2025.

Returning to Work After a Break

If you've been out of the workforce (for parenting, education, health reasons, or traveling), you won't have a recent P45. You must register your return to employment with Revenue. Don't assume your tax records will automatically update—they won't, and you'll end up on emergency tax.

Lost or Missing P45

If you've lost your P45 or your previous employer hasn't provided it, contact that employer's payroll department first. If unsuccessful, contact Revenue directly—they can access the information and issue a Tax Credit Certificate for your new employment. Don't wait or assume your new employer can sort it out; they can't without the proper documentation.

Prevention Checklist: Never Pay Emergency Tax Again