Ireland Tax Rates
Ireland is renowned for its business-friendly tax environment, featuring a 12.5% corporate tax rate (15% for large multinationals under Pillar Two) that has attracted major global technology and pharmaceutical companies. Personal income is taxed at two rates: 20% and 40%, supplemented by USC (Universal Social Charge) and PRSI (social insurance). Ireland also features a Special Assignee Relief Programme (SARP) for expatriates and no capital gains tax on principal residence sales.
Top Income Tax Rate
52%
Corporate Tax Rate
12.5%
VAT / Sales Tax
23%
Capital Gains Tax
33%
Detailed Tax Information
Income Tax Brackets
Ireland has a two-rate income tax system: 20% on the first €42,000 (single person; €51,000 for married one-earner couples) and 40% on the remainder. Additionally, the Universal Social Charge (USC) of 0.5-8% applies to gross income, and Pay Related Social Insurance (PRSI) of 4% applies to employment income. The combined top marginal rate is approximately 52% (40% + 8% USC + 4% PRSI). Personal tax credits (€1,875 single, €3,750 married) reduce the tax payable.
| Income Range | Tax Rate |
|---|---|
| €0 – €42K | 20% |
| €42K+ | 40% |
Corporate Tax
Ireland's headline corporate tax rate of 12.5% on trading income has been the cornerstone of its economic development strategy. A higher rate of 25% applies to non-trading (passive) income including investment income, rental income, and foreign dividends. Under the OECD Pillar Two agreement, Ireland applies a 15% minimum effective rate for multinational groups with consolidated revenue over €750 million. Ireland's Knowledge Development Box (KDB) provides an effective 6.25% rate on qualifying IP income.
Standard Rate
12.5%
Capital Gains Tax
Capital gains in Ireland are taxed at a flat rate of 33% (Capital Gains Tax - CGT). This rate is among the highest in Europe. An annual exemption of €1,270 per individual applies. Entrepreneurs selling qualifying business assets benefit from a reduced 10% rate on the first €1 million of lifetime gains. CGT is payable in two installments: preliminary tax by December 15 for gains in January-November, and by January 31 for December gains.
Rate
33%
VAT / Sales Tax
Ireland applies a standard VAT rate of 23%, with reduced rates of 13.5% and 9%, plus an extensive zero-rate category. Ireland's zero rating of basic food, children's clothing, and medicines makes essential items more affordable. The livestock rate of 4.8% applies to certain agricultural transactions.
Standard Rate
23%
Cryptocurrency Tax
Cryptocurrency gains in Ireland are subject to Capital Gains Tax at 33%. Each disposal (sale, exchange, gift, or use for payment) is a taxable event. The annual CGT exemption of €1,270 applies. Crypto received through mining or staking may be treated as income, subject to income tax, USC, and PRSI. Revenue has issued guidance classifying cryptocurrency as an asset rather than currency.
Tax Treaties
Ireland has approximately 76 double taxation treaties in force and continues to expand its network. As a major FDI destination, Ireland's treaties are designed to facilitate international investment. Treaties typically reduce withholding taxes on dividends, interest, and royalties. Ireland participates in OECD BEPS initiatives and has signed the Multilateral Instrument (MLI).
Treaty Network
76
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Ireland
See how much you could save by moving here from your current country.
$-11,238
Tax in United States
$24K
24.4% effective
Tax in Ireland
$36K
35.6% effective
Additional Cost
46.1%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
