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PAYE job plus side income in Ireland: tax and how to declare it
Selling on Etsy, freelancing, tutoring or renting a room while you have a PAYE job? Side income is taxable, but how you declare it depends on how much you make.
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.
The two thresholds that decide everything
| Your non-PAYE income | What you do |
|---|---|
| Taxable (net) under €5,000 and gross under €30,000 | Declare it on a Form 12 through Revenue myAccount. Revenue can collect the tax by reducing your tax credits and rate band ("coding it in"). |
| Taxable €5,000 or more, or gross €30,000 or more | You are a "chargeable person". Register for self-assessment and file a Form 11 on ROS. |
"Taxable" means after allowable expenses. A side business turning over €12,000 with €8,000 of costs has €4,000 taxable income, so it falls under the Form 12 route.
Which rate applies?
Side income is added on top of your salary, so it's taxed at your marginal rate. If your salary already uses up the 20% band, side profit is taxed at 40%, plus USC.
Tax credits
Self-employed income can earn the Earned Income Tax Credit, but if you also get the Employee (PAYE) Tax Credit, the two together can't exceed €2,000 (2026). With a full-time PAYE job you usually already have the full €2,000, so the side hustle adds no extra credit.
PRSI
Self-employed income of €5,000 or more a year is generally liable to Class S PRSI (4.35% from 1 October 2026). Check how it applies to your mix of income.
How much to set aside
- Salary in the 20% band: about 20% income tax + 3% USC on side profit, so put aside 25–30%.
- Salary above the 20% band: 40% + USC (+ PRSI over €5,000), so put aside 45–50%.
Keep records from day one
Log every sale and every expense (materials, platform fees, postage, a share of phone and internet). Records support your return and reduce the taxable figure.
Related: Irish sole trader tax explained and rental income tax for Irish landlords.
Sources
- Revenue – do you need to submit a tax return?
- Revenue – who should register for self-assessment?
- Revenue – Earned Income Credit
- Revenue – is your extra income taxable?
- Revenue – PRSI for the self-employed
Figures checked 12–13 October 2026. Rules change, so always confirm with the official source.
Frequently asked questions
Do I have to declare side income under €5,000 in Ireland?
Yes. You still declare it, usually on a Form 12 through Revenue myAccount, as long as the taxable amount is under €5,000 and the gross is under €30,000. Revenue can then collect the tax through your PAYE tax credits.
When do I need to file a Form 11?
When your taxable non-PAYE income is €5,000 or more, or your gross non-PAYE income is €30,000 or more. You are then a chargeable person and must register for self-assessment.
Do I get an extra tax credit for my side business?
Usually not if you work full time. The Employee Tax Credit and Earned Income Tax Credit combined can't exceed €2,000 in 2026.
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.