Two Jobs in the Same Year: Your PAYE Tax Refund Guide Ireland 2025

Revenue-compliant guidance | s.112 & s.472 TCA 1997 | Updated 2025 | Revenue.ie

Quick Answer

Working two PAYE jobs in the same year in Ireland — whether simultaneously or sequentially — almost always results in a tax overpayment. Under s.112 TCA 1997, all employment income is taxable under Schedule E, but the standard rate band of €42,000 at 20% must be allocated between employers by Revenue. If Revenue allocated the full €42,000 band to your main employer, income from your second employer is taxed at 40% from the first euro — even if your combined income from both is still within the €42,000 threshold. The Employee Tax Credit (s.472 TCA 1997, €1,875 in 2025) is applied only once and only to one employer — the other employer has no credit to apply. This structural mismatch between how PAYE operates and how your actual annual liability should be calculated creates an overpayment for almost every worker with two jobs in the same year. MyTaxRebate calculates the precise overpayment for each year in the four-year window and submits the consolidated recovery claim to Revenue.

What this guide covers

• Exactly why two jobs in the same year creates a PAYE overpayment
• The specific calculation of the overpayment with worked examples
• The difference between simultaneous and sequential two-job situations
• How MyTaxRebate calculates and submits the recovery claim
• What additional reliefs can be included in the same claim

Key Facts

• Your standard rate band (€42,000 at 20% in 2025) can only be allocated to one employer by default — income from a second employer is taxed at 40%.
• The Employee Tax Credit (€1,875 in 2025) is applied to one employer’s certificate — the second employer has no credit to apply.
• If your combined income from both jobs is below €42,000, all of the second job’s income should be taxed at 20% — the 40% deduction is an overpayment of 20 percentage points on all income from that employer.
• The overpayment is recoverable for up to four years: 2022, 2023, 2024, and 2025.
• You can request Revenue to split the standard rate band prospectively — but this does not refund past years. A formal claim is required for prior-year recovery.
• The 2022 window closes on 31 December 2026.

Why Two Jobs Creates a Predictable Overpayment

Revenue’s PAYE system is designed primarily for a worker with a single employer. When you have two employers, Revenue must make a decision about how to allocate your annual standard rate band (€42,000 at 20%) between them. By default, Revenue allocates the full band to your primary employer (usually your main job). Your second employer is then instructed to deduct tax at 40% on all income they pay you, regardless of your combined income from both employers.

This creates a systematic overpayment whenever your combined income is less than the total of what your second employer has taxed at 40% but should have taxed at 20%. The overpayment equals 20% (the difference between the 40% applied and the 20% that should apply) on the second employer income that falls within the remaining standard rate band.

Worked example: You earn €38,000 from Job A (your main employer, all taxed at 20% with full rate band). You earn €6,000 from Job B. Your combined income is €44,000. Your correct position: €42,000 at 20%, €2,000 at 40%. But Revenue taxed your Job B income as: €6,000 at 40% = €2,400 tax. The correct tax on that €6,000 (assuming €4,000 within the standard band and €2,000 at higher rate): (€4,000 × 20%) + (€2,000 × 40%) = €800 + €800 = €1,600. Overpayment: €2,400 – €1,600 = €800.

Sequential Jobs — Changing Employers During the Year

When you leave one employer and join another during the year, your credits and rate band were with your old employer at the start of the year. The new employer must apply for a certificate transfer. During the transition, emergency tax at 40% applies. Even after the transfer, the year-end calculation must assess all income from both periods together to determine the correct liability. Income from the first employer (already taxed at the correct rate with full credits) and income from the second employer (which may include an emergency tax period and then a corrected rate) are combined, and the total liability is compared to the total deducted. This often produces a refund.

How to Prevent the Problem Going Forward

You can request Revenue to split your standard rate band between two employers. This means a portion of the €42,000 band is allocated to each employer, reducing or eliminating the structural overpayment going forward. Contact Revenue through myAccount (or ask MyTaxRebate to assist) to request a rate band split for the current year. This prevents future overpayments — but does not refund prior-year overpayments, which require a separate formal claim.

How MyTaxRebate Calculates the Overpayment

We review your Revenue payroll records for each employer in each of the four claimable years. We combine the income from all sources, determine the correct tax liability at the applicable rates, apply the correct credits (€1,875 Employee Tax Credit for 2025, with the correct values for prior years), and calculate the overpayment. We include any additional reliefs (medical, WFH, flat-rate) in the same calculation and submit a consolidated claim for all four years. Revenue processes each year separately and issues refunds as each is confirmed.

The Mechanism: How Two Jobs in the Same Year Create an Overpayment

Under s.112 TCA 1997, all employment income is assessed as Schedule E income for the tax year, regardless of the number of employers. Your total tax liability is calculated on the combined income from both positions. Revenue’s standard rate band (€42,000 in 2025 for a single person) applies to your total income, not to each employer separately. The Employee Tax Credit under s.472 TCA 1997 (€1,875) and Personal Tax Credit (€1,875) also apply once, to the total income. The overpayment occurs because each employer deducts tax independently, without full knowledge of the income from the other employer.

When the year has two separate employment periods (you left Job A and started Job B), Job A’s payroll applied a full standard rate band from the start of the year; Job B’s payroll then also applies a fresh rate band calculation from the new start date. Depending on when in the year the switch occurred and how Revenue transferred the tax credit certificate, the combined deduction from both employers typically exceeds what the single full-year calculation requires. The year-end balance — corrected by Revenue on claim — refunds the excess.

When Two Simultaneous Jobs Are Involved

For workers who held two jobs at the same time (concurrent, not sequential), the rate band issue is different. Revenue typically assigns the full rate band to the primary employer, meaning the secondary employer taxes all income at 40% from the first euro. Where the combined income from both jobs is below €42,000, all income should be taxed at 20% — but the split-rate-band error means the secondary income attracts 40%. The 20 percentage point difference on secondary income is the overpayment, and it is recoverable in full through a backdated claim for each affected year.

Recovering Two-Job Overpayments Across Four Years

Many workers hold two jobs or change jobs in multiple years within the four-year backdating window. Each year with a two-job position generates a separate overpayment entitlement. MyTaxRebate reviews all four claimable years (2022–2025), identifies every year where two-job overpayments apply, and includes them alongside any other reliefs — medical expenses, WFH, flat-rate expenses — in a single consolidated claim. The combined total across four years of two-job overpayments can be substantially larger than any single year’s refund suggests.

Worked Scenarios

Common Mistakes to Avoid

• Not requesting a rate band split with Revenue for your second job: If you currently have two jobs and Revenue has not split your rate band, you are continuing to overpay. Request the split for the current year while also claiming back prior-year overpayments.
• Assuming the combined tax was correct because both employers followed Revenue’s instructions: Both employers were correct per their individual certificates. The overpayment arises from how Revenue allocated the band — not from any employer error.
• Not claiming for all four years where two jobs applied: If you had the same two-job pattern in 2022, 2023, and 2024 as in 2025, each year generated the same overpayment. All four are claimable together.

When Two Jobs Do Not Create an Overpayment

• Your combined income significantly exceeds €42,000: If both jobs together produce income well above the standard rate band, income from the second employer is correctly taxed at 40% (since all of the band was already used by the main employer).
• Revenue already split your rate band between both employers: If you proactively requested a rate band split and it was applied, the structural overpayment does not arise.
• Self-employed income from the second job: If your second job is genuinely self-employed income (invoiced, not on payroll), the PAYE rate band allocation does not apply to it.

Key Takeaways

• Two PAYE jobs in the same year almost always result in a tax overpayment due to how the standard rate band is allocated.
• The overpayment equals 20% of the second employer’s income that fell within the unused standard rate band.
• This applies to both simultaneous jobs and sequential jobs where emergency tax also applies.
• Request a rate band split from Revenue for the current year to prevent future overpayments while also claiming past years.
• MyTaxRebate calculates the precise overpayment for each of the four claimable years and submits a consolidated claim.

Frequently Asked Questions

Related Guides

• Complete guide to PAYE tax refunds Ireland 2025
• PAYE refunds for workers with multiple jobs
• Incorrect tax deductions on your salary
• The Employee Tax Credit explained — €1,875 in 2025