Income tax

Exemption Limits 2025

  • Single/Widowed/Surviving Civil Partner 65 and over: €18,000

  • Married/Civil Partnership 65 and over: €36,000

  • Additional for Dependent Children 1st and 2nd child (each): €575. Each subsequent child: €830

Personal Tax Credits

  • Single Person: €2,000

  • Married Person/Civil Partnership: €4,000

  • Employee Tax Credit (formerly PAYE Tax Credit): €2,000

  • Earned Income tax credit (max): €2,000

  • Widowed Person/Surviving Civil Partner qualifying for Single Person Child Carer Tax Credit: €1,900

  • Widowed Person/Surviving Civil Partner without qualifying dependent children: €2,540

  • Widowed Person/Surviving Civil Partner in year of bereavement: €4,000

  • Single Person Child Carer Tax Credit, Widowed/Surviving Civil Partner, Deserted, Separated or Unmarried (with qualifying dependent children): €1,900

  • Home Carer (max.): €1,950

  • Age Tax Credit if Single / Widowed / Surviving Civil Partner: €245

  • Age Tax Credit if Married / Civil Partnership: €490

  • Incapacitated Child Credit: €3,800

  • Dependent Relative: €305

  • Incapacitated Person – Allowance For Employing a Carer: €75,000*max

  • Fishermen’s credit: €1,270

  • Sea-going naval personnel credit: €1,500

  • Rent tax credit** for jointly assessed married person or civil partner €2,000 and in all other cases €1,000

  • Small benefit exemption (max, over an aggregate of no more than five gifts): €1,500

*Relief is allowable at the individual’s highest rate of tax, i.e. 20% or 40%. Where this relief is claimed, the incapacitated child tax credit or the dependent relative tax credit, as appropriate, cannot be claimed.

**Applies to parents paying for children’s ‘rent a room’/’digs’ type accommodation.

Tax relief, which is given at source, on health insurance premium is limited to: €1,000 per adult policy and: €500 per child policy. With respect to policies entered into or renewed on or after 1 May 2015, the: €1,000 ceiling will apply to all adults aged 21 and older, regardless of the fact that they may be availing of a “child-rate” premium offered by the insurer.

An Income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heating and internet services for days spent working from home (apportioned based on the number of days worked from home over the year) can be claimed by remote workers. Employers may also pay remote workers up to: €3.20 per day to cover the costs of working from home without deducting income tax, universal social charge (USC) or pay-related social insurance (PRSI).

Exemptions and reliefs

Landlords temporary tax relief

A relief for qualifying small landlords whereby rental income of €3,000 (2024),
€4,000 (2025), and €5,000 (2026/27) is disregarded at the standard 20% rate,
subject to clawback provisions.

Mortgage interest relief

Temporary tax credit for LPT compliant taxpayers with an outstanding mortgage
balance on their principal private residence (PPR) of between €80,000 and
€500,000 as of 31 December 2022. Relief available at the standard rate of income
tax on the increase in interest paid in 2024 over the interest paid in 2022, capped
at €6,250 (tax credit of €1,250) per residence. 

Child minder’s exemption

Full exemption on income up to €15,000: if income exceeds €15,000, entire amount is taxable.

Rent a room scheme

Gross annual rental income up to €14,000 is exempt: if income exceeds €14,000, entire amount is taxable. 

Personal Income Tax Rates / Tax Bands 2025

  • Single/Widowed/Surviving Civil Partner without dependant children: €44,000 @ 20%, Balance @ 40%

  • Single / Widowed / Surviving Civil Partner Qualifying for One-Parent family tax credit: €48,000 @ 20%, Balance @ 40%

  • Married Couple or Civil Partnership (one spouse/civil partner with income): €53,000@ 20%, Balance @ 40%

  • Married Couple/Civil Partnership (both spouses/civil partners with income): €53,000@ 20%* Balance @ 40%

*with an increase of €35,000 max