Calculating your Income Tax

What are tax credits?

Tax credits are used to reduce the amount of tax you pay.

Personal Tax Credit

Everyone resident in Ireland, is entitled to a Personal Tax Credit. The Personal Tax Credit you get depends on whether you are:

  • single
  • married or in a civil partnership
  • widowed or a surviving civil partner
  • separated
  • divorced or a former civil partner.

Additional tax credits

Depending on your personal circumstances, you might also be entitled to additional tax credits, for example if you are:

Tax credit amounts, for this year and the previous four years, are in the Tax rates, bands and reliefs chart.

Note

You can claim additional credits you may be due for 2020. Claim these credits by clicking on the 'Manage your tax 2020' link in PAYE Services in myAccount.

How tax credits work

If you are an employee, then your tax credits will be shown on your Tax Credit Certificate. Your employer will be notified of your total tax credits. They will not be given a breakdown of your tax credits, only the total amount. Your employer will use this to calculate the amount of tax to deduct from your weekly or monthly pay.

Under the Pay As You Earn (PAYE) system, tax credits are spread evenly throughout the year. If you are working for the full year, depending on how often you get paid, your tax credits will be divided into:

  • 52 weekly equal amounts
  • 12 monthly equal amounts.

If you have a Second or multiple jobs, you can divide your tax credits between them.

Unused tax credits

Unused tax credits in a pay week or month are carried forward to later pay period(s) in the same tax year.

You cannot:

  • get a refund for unused tax credits
  • carry unused tax credits into another tax year.

Next: What is a tax rate band?