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Irish sole trader tax explained: income tax, USC and PRSI
As a sole trader in Ireland you pay three charges on your profit (income minus allowable expenses): income tax, USC and Class S PRSI. Knowing your marginal rate, the tax on your next euro of profit, is the key to setting money aside.
Check official sources. Figures below were checked against the official pages listed at the bottom on 14 October 2026. Budget and Finance Act changes can alter them, so confirm before relying on them.
Income tax (2026)
- 20% up to €44,000 (single person), 40% above.
- Credits: €2,000 personal credit plus the €2,000 Earned Income Tax Credit for the self-employed.
USC (2026)
No USC if total income is €13,000 or less. Otherwise 0.5% on the first €12,012, 2% up to €28,700, 3% up to €70,044 and 8% above, plus an extra 3% on self-employed income over €100,000.
Class S PRSI
4.2% until 30 September 2026 and 4.35% from 1 October 2026. It applies once your income is €5,000 or more, with a minimum payment of €650 a year.
Your marginal rate (single, from October 2026)
| Profit band | Income tax | USC | PRSI | Tax on each extra €1 |
|---|---|---|---|---|
| €28,700 – €44,000 | 20% | 3% | 4.35% | ≈ 27% |
| €44,000 – €70,044 | 40% | 3% | 4.35% | ≈ 47% |
| €70,044 – €100,000 | 40% | 8% | 4.35% | ≈ 52% |
| Over €100,000 | 40% | 11% | 4.35% | ≈ 55% |
Bands assume a single person with no other income. Married couples, single parents and anyone with PAYE income will differ.
Set-aside rule of thumb
Your average rate is lower than your marginal rate because of credits and lower bands. Around 18% of profit covers a €45,000 profit (see the worked example in our set-aside guide), but if your profit is rising, 25–30% is a safer habit.
Paying it: Form 11 and preliminary tax
You file a Form 11 for last year and pay preliminary tax for this year by 31 October. Revenue usually extends the deadline for people who pay and file on ROS, so check each year's date. Preliminary tax must be at least 90% of this year's liability or 100% of last year's to avoid interest.
Cut your bill legally
- Claim every allowable business expense (wholly and exclusively for the business), and keep receipts for six years.
- Personal pension contributions get income tax relief within age-related limits.
- Keep a mileage log for business travel.
Sources
- Revenue – tax rates, bands and credits
- Revenue – USC rates and thresholds
- Revenue – PRSI for the self-employed (Class S)
- Revenue – preliminary tax
- gov.ie – PRSI Class A rates
Figures checked 12–13 October 2026. Rules change, so always confirm with the official source.
Not financial advice. These guides are general information for budgeting and planning, not financial, tax, legal or mortgage advice. Rules change and your situation is unique. Check official sources or a qualified adviser before you act.