How tax credits work in Ireland
Tax credits reduce the amount of income tax you pay. They are one of the biggest reasons two people on similar salaries can have different take-home pay.
What a tax credit does
A tax credit reduces your income tax directly. It is different from a deduction from your income. If your tax bill is €5,000 and you have €4,000 in tax credits, your income tax due becomes €1,000.
Tax credits reduce PAYE income tax. They do not reduce USC or PRSI.
Source: Revenue — How tax credits work
Common PAYE tax credits
| Credit | Plain English meaning | 2026 amount |
|---|---|---|
| Personal Tax Credit | A basic credit Revenue gives if you are resident in Ireland. The amount depends on your circumstances. | €2,000 for a single person |
| Employee Tax Credit | A credit for many PAYE employees. | Up to €2,000 |
| Other credits | Credits such as Home Carer, Single Person Child Carer, Age or Rent Tax Credit may apply depending on your situation. | Varies |
Source: Revenue — Tax rates, bands and reliefs 2026
How credits are spread through the year
Under PAYE, tax credits are usually spread across the year. If you are paid weekly, they are split into 52 weekly amounts. If you are paid monthly, they are split into 12 monthly amounts.
For example, €4,000 of yearly credits is about €333.34 per month or €76.93 per week.
Unused tax credits
Revenue says unused credits in a pay period can be carried forward to later pay periods in the same tax year. You cannot get a refund just because some credits were unused, and you cannot carry them into a later tax year.
Where to check your credits
You can see your tax credits on your Tax Credit Certificate in Revenue myAccount. Your employer gets the total credit amount through Revenue payroll instructions, but not the full breakdown of your personal credits.