Employee Tax Credit

You can claim the Employee Tax Credit if you receive income that is taxable under the Pay As You Earn (PAYE) system. This includes:

• wages
• benefit in kind
• occupational pensions
• and
• Department of Social Protection (DSP) income.

You will also be entitled to this tax credit if you are an Irish resident and are in receipt of:

• a social security pension received from another EU Member State
• or
• wages from abroad where tax was deducted under a PAYE type system.

Credit available

The amount you can claim will depend on your yearly income.

The maximum employee tax credit for 2025 is €2,000.

If your yearly employment or pension income (PAYE income) is €10,000 or more, you will be entitled to the full amount. If your PAYE income is below €10,000, then the amount of the credit is capped at 20% of this income. For example if your yearly PAYE income is €5,000, then the credit will be €5,000 @ 20% = €1,000.

If you are married or in a civil partnership and both of you have PAYE income, you are both entitled to claim the credit. You cannot transfer the credit to your spouse or civil partner.

You are only entitled to one Employee Tax Credit no matter how many employments you have.

The Employee Tax Credit cannot be claimed by:

• proprietary directors, their spouse or civil partner on income directly related to that directorship 
• the spouse, civil partner or child of a person paying the income
• or
• the spouse, civil partner or child of a partner in a partnership.

A proprietary director is a director who:

• is the beneficial owner of a company
• and
• can directly or indirectly control more than 15% of the ordinary share capital of a company.

Children of proprietary directors can claim the credit if:

• their job is in a qualifying Pay Related Social Insurance (PRSI) class
• PAYE has been correctly deducted from their income
• the child gives all of their time to the job
• or
• they are paid at least €4,572 per year. If they work part time this figure may be apportioned.

If you are not entitled to the Employee Tax Credit you may be entitled to the Earned Income Credit.

The sum of these credits cannot be more than €2,000, if you have income that qualifies for:

• Earned Income Credit
• and
• Employee Tax Credit.

How to claim

Use myAccount to claim this credit on the 'PAYE Services' card.

Making a claim for the current year:

1. Sign in to myAccount.
2. Click the 'Manage your Tax for the current year' link under 'PAYE Services'.
3. Select ’Claim tax credits'.

Making a claim for a previous year:

For 2021 and subsequent years: 

1. Sign in to myAccount.
2. Click on the 'Review your Tax for the previous 4 years' link under 'PAYE Services'.
3. Request a Statement of Liability.
4. Click on 'Complete Income Tax Return'.
5. On the 'Tax Credits & Reliefs' page, select 'Your job' and add it as a credit.
6. Complete and submit the form.