Ireland Tax GuideBudget 2025Take-Home Pay

How to Calculate Your Take-Home Pay After Budget 2025

A beginner-friendly walkthrough using the new 2025 Irish tax bands, USC rates, and PRSI changes.

Ultimate Salary Calculator Team

Our content is written and reviewed by finance and tax enthusiasts to ensure accuracy.

Confused by new bands, credits and USC tweaks? Grab your gross salary and follow these four steps to calculate your exact take-home pay.

Step 1: Calculate Income Tax

  • • First €44,000 taxed at 20%
  • • Remainder taxed at 40%

This is the updated tax band that came into effect with Budget 2025.

Step 2: Deduct USC (Universal Social Charge)

USC is calculated in brackets:

  • • 0.5% on first €12,012
  • • 2% on €12,012 - €27,382
  • 3% on €27,382 - €70,044 (reduced from 4%)
  • • 8% on amounts over €70,044

Step 3: Apply PRSI

4.1% on all earnings for most of 2025
(Increases to 4.2% from October 1st, 2025)

Step 4: Add Tax Credits

Standard credits now €2,000 each:

  • • Personal Tax Credit: €2,000
  • • Employee/Earned Income Credit: €2,000
  • • Total Credits: €4,000

Worked Example: €60,000 PAYE Employee

Income Tax:

€44,000 × 20% + €16,000 × 40% = €8,800 + €6,400 = 11,200

USC & PRSI:

Combined social charges = 3,821

Tax Credits:

€4,000 applied to reduce final tax bill

Final Take-Home Pay:

44,979 (~€3,748/month)

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