Ireland self-employed tax calculator 2026 (income tax, USC, PRSI)
An Irish sole trader in 2026 pays income tax at 20% on profits up to €44,000 and 40% above that (single standard-rate band). On top, self-employed traders pay PRSI Class S at 4.2% plus USC, together roughly 8.5% of profits.
This calculator estimates the total tax an Irish sole trader owes on self-employment profit for 2026, combining income tax at the 20% and 40% rates with PRSI Class S and the Universal Social Charge (USC).
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Result
Ireland Sole trader tax rates 2026
| Band or item | Rate |
|---|---|
| Up to €44,000 | 20% |
| Over €44,000 | 40% |
| Social contributions (PRSI Class S + USC (estimate)) | 8.5% |
Source: www.revenue.ie
How is income tax calculated for an Irish sole trader?
As a sole trader you are taxed on your real net profit (business income minus allowable expenses), not on turnover. That profit is charged to income tax through two bands. For a single person in 2026 the standard-rate band is €44,000: profit up to that level is taxed at 20%, and every euro above €44,000 is taxed at the higher rate of 40%.
The figures above are the gross tax charge. In practice, personal tax credits (such as the personal credit and the earned-income credit) are then deducted to arrive at the tax you actually pay, so your final income tax bill is lower than the raw 20%/40% calculation. This calculator focuses on the statutory bands and contribution rates; enter your profit to see the band-by-band breakdown.
PRSI and USC: the self-employed social contributions
Self-employed sole traders pay PRSI at Class S. The Class S rate is 4.2% of profits, which builds your entitlement to benefits such as the State Pension (Contributory).
On top of PRSI you also pay the Universal Social Charge (USC), a progressive charge that runs from about 0.5% up to 8% depending on income. Because USC is banded, this tool approximates PRSI Class S and USC together as a combined contribution of roughly 8.5% of profit for a typical trader. If you want to isolate the pension-building element, you can model PRSI Class S only at 4.2%. Both PRSI and USC are payable in addition to income tax, so your effective overall rate is higher than the headline income tax rate alone.
Worked example: €50,000 profit
Take a single sole trader with a net profit of €50,000 in 2026.
- Income tax at 20%: €44,000 × 20% = €8,800
- Income tax at 40%: (€50,000 − €44,000) = €6,000 × 40% = €2,400
- Gross income tax: €8,800 + €2,400 = €11,200 (before tax credits)
- PRSI Class S + USC at ~8.5%: €50,000 × 8.5% = €4,250
That gives an indicative combined charge of about €15,450 before personal tax credits are applied. Tax credits reduce the income tax portion, so your real net liability will be lower. If you instead counted PRSI Class S only at 4.2%, the contribution element would be €2,100 rather than €4,250.
Frequently asked questions
How much tax does an Irish sole trader pay in 2026?
A sole trader pays income tax at 20% on profit up to €44,000 and 40% above that, plus PRSI Class S at 4.2% and USC (combined roughly 8.5% of profit), all before personal tax credits.
What is the standard-rate income tax band for 2026?
For a single person the standard-rate band is €44,000. Profit up to €44,000 is taxed at 20%, and anything above €44,000 is taxed at the higher rate of 40%.
What PRSI do self-employed people pay in Ireland?
Self-employed sole traders pay PRSI Class S at 4.2% of their profits. This contribution counts toward benefits including the State Pension (Contributory).
How much is USC for a sole trader?
USC is a progressive charge running from about 0.5% to 8% depending on income. This calculator approximates PRSI Class S and USC together as about 8.5% of profit.
Are sole traders taxed on turnover or profit?
You are taxed on net profit, meaning business income minus allowable expenses, not on total turnover. The 20%/40% bands and the ~8.5% PRSI plus USC charge all apply to that profit figure.
What is the total effective rate on €50,000 of profit?
On €50,000, gross income tax is €11,200 (€8,800 at 20% plus €2,400 at 40%) and PRSI plus USC at ~8.5% is €4,250, giving about €15,450 before tax credits reduce the bill.
Official sources
- Revenue (Office of the Revenue Commissioners) — Corporate & personal income tax