What income tax rates apply to self-employed sole traders in Ireland in 2024?
Ireland has a two-band income tax system for 2024: - Standard rate: 20% on income up to the standard rate cut-off point - Higher rate: 40% on income above the cut-off point For a single person in 2024: the standard rate band is €42,000 (income up to €42,000 taxed at 20%, above at 40%). Self-employed individuals also get the Earned Income Credit (€1,775 in 2024), which reduces their tax liability — effectively replacing the PAYE credit that employees receive. Personal Tax Credit: €1,875 for single people. So a single self-employed person has €3,650 in tax credits (Personal + Earned Income), meaning you pay no income tax on the first ~€18,250 of profit. Beyond income tax, also pay USC and Class S PRSI (total effective rate of approximately 50–55% at higher income levels).
- 20% Income Tax on first €42,000 (single person); 40% on income above that
- Earned Income Credit: €1,775 — replaces the PAYE credit for self-employed
- Personal Tax Credit: €1,875 for single people
- Total credits: €3,650 for a single self-employed person
- Also pay USC (0.5%–8%) and PRSI Class S (4%) on top of income tax