Calculating your Income Tax

What are gross pay and taxable pay?

Gross pay

Gross pay is the employee’s pay of any kind, including:

  • notional pay
  • share based remuneration
  • the employees pay before any pension contributions or salary sacrifice deductions are made.

Chapter 3 of the Employers Guide to PAYE details the different types of pay that would be included.

Taxable pay

Taxable pay is your gross pay less any contributions you make to a:

  • Revenue approved pension scheme
  • Revenue approved Permanent Health Benefit (Income Continuance) scheme
  • Salary Sacrifice Arrangement
  • Personal Retirement Savings Account (PRSA)
  • Retirement Annuity Contract (RAC). 

These amounts are deducted from your gross pay before your employer calculates your tax.

Next: What are tax credits?