Living in Ireland: residency, 2026 tax brackets, USC, PRSI and dividends

In Ireland, tax residency is calculated in days: 183 days in the tax year, or 280 days over two years. Three years of residency grants "habitual resident" status, which changes the taxation of foreign income. Income tax for 2026 is 20 % and then 40 %, to which USC and PRSI are added. The 2027 Budget, presented on October 6, 2026, announces changes whose effective date is not specified. This page does not provide the Irish capital gains tax rate: it is currently being revised.

Resident or non-resident: 183 days, 280 days, 30 days

Revenue, the Irish tax administration, applies three benchmarks.

A day counts as soon as you are in Ireland for part of the day. Two exceptions: staying in the "airside" area of an airport or port, and being prevented from leaving by unforeseen and unavoidable reasons.

A person arriving with the intention of becoming a resident the following year can choose to be a resident from the year of arrival. They are then taxed on their worldwide income and must notify the tax authorities in writing. For employment income, the split-year rule disregards income earned abroad before arrival, provided the individual is a resident in the year of arrival and the following year, but not a resident the previous year.

The 1968 Franco-Irish convention does not distinguish between two residences for an individual. This rule is discussed on our page about the France-Ireland convention.

Habitual resident: the three-year threshold

After three consecutive tax years of residence, you become "ordinarily resident" from the beginning of the fourth year. Upon leaving Ireland, you remain a ordinarily resident for three consecutive tax years and pay Irish tax on your worldwide income, except in certain cases:

• income from a commercial or professional activity carried out entirely outside of Ireland; ;
• income from employment carried out entirely outside Ireland; ;
• Other foreign-source income, such as investment income, is taxable if it amounts to €3,810 or less. Any amount exceeding this is fully taxable.

Domicile and basis of repatriated funds

Domicile is not the same as residence. Each person receives at birth a domicile of origin, generally that of the father, and retains it unless they choose to acquire a new one.

A person who is resident, non-habitual resident, or not domiciled in Ireland pays Irish tax only on their Irish-source income and on their foreign income to the extent that it is repatriated to Ireland, whether by bank transfer, post, or online transfer. All three conditions must be met. According to the Revenue Authority, domicile affects how foreign-source income is taxed.

A specific levy targets individuals domiciled in Ireland with very high incomes and substantial Irish property holdings: €200,000 per year. This page does not detail the thresholds.

Income tax, USC and PRSI in 2026

Income tax. For a single person with no eligible dependent children, the tax credit is €20 up to €44,000, and €40 above that. For a married couple with only one income, the threshold is €53,000. The 2026 tax credits are €2,000 for a single person, €4,000 for a couple, €2,000 for the employee tax credit, and a maximum of €2,000 for the earned income tax credit.

USC (Universal Social Charge). Standard tax rates for 2026: 0.5 % on the first €12,012, 2 % on the next €16,688, 3 % on the next €41,344, and 8 % on the remaining amount. According to CLEISS, the USC "applies to gross annual income exceeding €13,000.".

PRSI (social security contributions). According to CLEISS, for 2026, a Class A employee pays 4.20 % on gross weekly wages exceeding €352.01, with a decreasing credit up to €424. The employer pays 9 % up to €552 and 11.25 % above that. A self-employed individual aged 16 to 66 with an annual income of €5,000 falls under Class S: 4.20 % on gross income with no upper limit, and a minimum contribution of €650 per year. The self-employed are not entitled to sickness benefits.

Budget 2027. The official guide announces a €2,500 increase in the entry threshold for the higher rate, a €125 increase in the main loans, and an increase in the ceiling for the second tranche of the USC (Unified Social Contribution) from €28,700 to €30,300. No effective date is given. The figures on this page are for 2026.

Irish dividends: 25% withholding tax (%) and exemption upon declaration

Dividend withholding tax (DWT) on dividends is 25 %. It is levied by companies resident in Ireland. A non-resident can claim an exemption, but it is not automatic. For an individual, the Revenue Authority requires that they are neither resident nor habitually resident in Ireland, and that they are a tax resident of a European Union or European Economic Area state other than Ireland, or of a country with a double taxation agreement with Ireland. Form V2A, certified by the tax authority of the country of residence, is submitted to the Irish company or its agent. The exemption is valid until December 31 of the fifth year following the year of its issuance.

The Franco-Irish convention only caps the French withholding tax on dividends. It does not set the rate of the Irish withholding tax.

Donations and inheritances: 33 %

The Irish gift and inheritance tax (CAT) rate has been 33 % since 6 December 2012. Allowances apply before tax is due, and a return is required when the total taxable value exceeds 80 % of the relevant group threshold (Income, form IT38). The 2027 Budget announces raised thresholds (Group A of 5 %, Groups B and C of 10 %), without specifying a date. The 2026 thresholds and the rules that determine when Ireland taxes a beneficiary are not included in the information reviewed. These should be checked before any gift is made.

Local savings and capital gains

The 2027 Budget also announces a reduction in the Irish exit tax rate on life insurance policies and funds, from 38 % to 35 %, with no effective date specified. The current rate has not been reviewed. This page does not cover local savings accounts or Irish capital gains tax: inquire with an Irish professional about the applicable rate on the date of your transfer.

Health, stay and SARP

For Irish health insurance, coverage depends on residency: according to CLEISS, a "habitual resident" is anyone who has lived in Ireland for at least one year. This definition of health insurance differs from that of tax habitual resident, which requires three years of residency (see above). EU citizens can stay freely for up to three months. Beyond that, one must be employed or have sufficient resources to maintain health insurance, according to Citizens Information.

The Special Assignee Relief Programme (SARP) provides income tax relief to certain individuals assigned to Ireland from abroad. It applies to assignments during the tax years 2012 to 2030. The employer must be a company incorporated and resident in a country that has a double taxation agreement or an information exchange agreement with Ireland. Applications are submitted through the eSARP portal on ROS. The percentage and maximum amounts are not detailed here.

A salary of €80,000: a numerical example (fictitious profile)

Situation. A fictitious employee, single, with no dependent children, is an Irish tax resident. Her gross annual salary is €80,000. She has no other income or deductions. Assumptions for the tax base: the USC (Unique Social Contribution) is applied in brackets to the entire gross salary exceeding €13,000; the PRSI (Personal Income Tax) Class A is applied at a rate of 4.20 % to the entire salary (€80,000 per year, or €1,538.46 per week, exceeding €552), without the declining credit. The sources consulted do not specify these tax bases.

Issue. She wants to know the total deductions for 2026 on this salary.

Strategy. It applies the 2026 scales: income tax at 20 % up to €44,000 and 40 % above, less €2,000 single person credit and €2,000 employee credit; USC by brackets; PRSI class A at 4.20 % according to the above assumption.

Result. Income tax: €23,200 less €4,000 in credits, i.e., €19,200. USC: €2,430.62. PRSI: €3,360. Total: €24,990.62, or 31.2% of gross salary. €55,009.38 remains before any other deductions. The profile and amounts are fictitious.

A residency test in numbers. A fictitious taxpayer spends 140 days in Ireland the previous year and 150 days this year. He does not reach 183 days in the year. He totals 290 days over the two years, more than 280, and more than 30 days this year: he is a resident.

What changes depending on your situation

• Your number of days of attendance in the current year and the previous year.
• Your home address and the date of your first three years of residence.
• The nature of your income: employment, self-employment, dividends, rent.
• Your family situation: single or married, one or two incomes, which sets the threshold for the 20 % rate and the loans.
• The effective dates of the measures in the 2027 Budget.

The rule depends on your situation. No results are guaranteed.