Self-employed tax in Ireland 2026 — full guide
As a sole trader or freelancer in Ireland, you pay income tax, USC, and PRSI on your net profit — that is, your gross income minus your allowable business expenses. Unlike PAYE employees, you manage your own tax through the self-assessment system and file an annual Form 11 return.
Key differences vs PAYE employment
| Item | PAYE Employee | Self-Employed / Sole Trader |
|---|---|---|
| Tax credit | PAYE credit €2,000 | Earned Income Credit €2,000 |
| PRSI class | Class A (4.2375% blended) | Class S (4.2375% blended) |
| PRSI exemption | Weekly earnings ≤ €352 | Total annual income < €5,000 |
| USC surcharge | No | +3% on income over €100,000 |
| Tax filing | Automatic via employer | Annual Form 11 (self-assessment) |
| Business expenses | Very limited | Fully deductible against profit |
Income tax bands 2026 (same as PAYE)
Self-employed individuals pay income tax at the same rates and bands as PAYE workers. The only difference is the tax credit — you receive the €2,000 Earned Income Credit rather than the PAYE credit.
| Status | 20% rate up to | 40% rate above |
|---|---|---|
| Single | €44,000 | €44,000 |
| Married, one income | €53,000 | €53,000 |
| Married, two incomes | €88,000 | €88,000 |
Allowable business expenses
Expenses that are wholly and exclusively incurred for business purposes can be deducted from your gross income before tax is calculated. Common allowable expenses include:
- Office costs — rent, utilities (business proportion), broadband, stationery
- Home office — a reasonable proportion of home running costs if working from home
- Travel & motor — fuel, car expenses (business use proportion), public transport, flights for business
- Equipment & software — computers, phones, subscriptions, tools of trade
- Professional fees — accountant fees, solicitor costs, Revenue-related charges
- Marketing — website costs, advertising, business cards, sponsorship
- Professional development — training courses, books, industry memberships
- Insurance — professional indemnity, public liability, business insurance
Personal expenses, entertainment costs, and the cost of your own meals are generally not allowable. When in doubt, keep receipts and ask your accountant.
Preliminary tax — 31 October deadline
Sole traders must pay preliminary tax by 31 October each year. This is an advance payment toward your current year's tax bill. You must pay at least the lower of:
- 90% of your final liability for the current tax year, or
- 100% of your liability for the prior tax year
Failure to pay on time results in interest charges of 0.0219% per day. Filing your Form 11 and paying any balance is also due by 31 October (or mid-November if filing via ROS online).
The 3% USC surcharge
Self-employed individuals with total income above €100,000 pay an additional 3% USC surcharge on the amount above €100,000. This brings the effective top USC rate to 11% on that portion. This surcharge does not apply to PAYE workers, making it one of the key tax differences between employment and self-employment at higher income levels.