Ireland Private limited company (Ltd) tax calculator 2026
An Irish private limited company (Ltd) pays corporation tax at 12.5% on trading income for 2026. Non-trading (passive) income is taxed at 25%. Dividends paid to Irish residents carry 25% dividend withholding tax (DWT), credited against the shareholder's own marginal income tax. The €12.5% rate applies with no minimum threshold.
This calculator estimates the Irish corporation tax an Ltd owes on its trading profit at the 12.5% rate, and shows what is left to distribute as a dividend after tax.
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Result
Ireland Private limited company (Ltd) tax rates 2026
| Band or item | Rate |
|---|---|
| Corporation tax | 12.5% |
| Dividend tax (on distribution) | 0% |
Source: taxsummaries.pwc.com
How is corporation tax calculated for an Irish Ltd?
An Irish private limited company is taxed on its profits, not on turnover. The headline rate for 2026 is 12.5% corporation tax, which applies to income from a genuine trade carried on in Ireland. There is no tax-free band for companies, so trading profit is charged at 12.5% from the first euro.
Taxable trading profit is your accounting profit adjusted for tax rules: you add back non-deductible items (such as depreciation, entertainment and general provisions), then deduct capital allowances on qualifying assets. The 12.5% rate is then applied to the resulting figure.
Not all company income enjoys the 12.5% rate. Passive (non-trading) income, such as rental profits, deposit interest and certain foreign income, is charged at the higher 25% rate. This calculator models the 12.5% trading charge; passive income at 25% is handled separately.
Dividends and dividend withholding tax
Corporation tax is only the company-level charge. When the Ltd distributes after-tax profit to its owners, a dividend withholding tax (DWT) of 25% is deducted at source on dividends paid to Irish-resident individuals.
DWT is not an extra final tax. The shareholder includes the gross dividend in their personal income tax return, is taxed at their marginal rate, and receives a credit for the 25% DWT already withheld. This avoids double counting: the withholding is effectively a prepayment of the shareholder's own income tax. Retained profits that are not distributed are not subject to DWT.
Worked example: €100,000 trading profit
Assume an Irish Ltd has adjusted trading profit of €100,000 for 2026.
- Corporation tax at 12.5%: €100,000 x 0.125 = €12,500
- After-tax profit available: €100,000 - €12,500 = €87,500
If the full €87,500 is paid out as a dividend, DWT at 25% is withheld: €87,500 x 0.25 = €21,875, so the shareholder receives €65,625 in cash. That €21,875 is credited against the shareholder's personal tax bill, and any balance up to their marginal rate is settled through their income tax return. If instead the profit were passive income taxed at 25%, the company charge would be €25,000 rather than €12,500.
Frequently asked questions
What is the corporation tax rate for an Irish limited company in 2026?
Trading income of an Irish Ltd is taxed at 12.5% in 2026. Non-trading passive income (such as rent and interest) is taxed at the higher 25% rate.
How much tax does an Irish Ltd pay on €100,000 of trading profit?
At the 12.5% rate, €100,000 of trading profit gives a corporation tax bill of €12,500, leaving €87,500 of after-tax profit.
Is there a tax-free threshold for Irish company profits?
No. There is no tax-free band for corporation tax, so trading profit is charged at 12.5% from the first euro.
What is dividend withholding tax in Ireland?
Dividends paid by an Irish Ltd to resident individuals are subject to 25% dividend withholding tax (DWT). The shareholder is then taxed at their marginal rate and receives a credit for the 25% already withheld.
Why are some company profits taxed at 25% instead of 12.5%?
The 12.5% rate applies only to active trading income. Passive income such as rental profits, deposit interest and certain foreign income is charged at 25%.
Do I pay tax again when I take profit out of my Irish Ltd?
Yes. After the company pays 12.5% corporation tax, distributed profit carries 25% DWT and is taxed on you personally at your marginal rate, with credit given for the DWT withheld.
Official sources
- Revenue (Office of the Revenue Commissioners) — Corporate & personal income tax