Employee Tax Credit

If you’re taxed under the PAYE system, you can claim an employee tax credit on your income, including:

• wages

• occupational pensions

• Department of Social Protection (DSP) pensions

• certain foreign pensions.

How much can I claim?

The amount you can claim will depend on your income and the maximum for 2025 is €2,000. If your yearly income is €10,000 or more you’ll be entitled to the full amount.

If your income is below €10,000 then the credit is capped at 20% of your income.

For example, if your yearly income is €5,000 this amount of credit is €5,000 @ 20% = €1,000

If you’re married/in a civil partnership and both of you have PAYE income, you can both claim the credit, however, you can’t transfer the credit to your spouse or civil partner.

You only get one employee tax credit per year no matter how many jobs you have.

This credit can’t be claimed by:

• proprietary directors, their spouses or civil partner

• the spouse, civil partner or child of a person paying the income

• 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

• 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 qualifies in a Pay Related Social Insurance (PRSI) class

• PAYE has been deducted from their income

• the child gives all of their time to the job

• they’re paid at least €4,572 per year