Taxation in the Republic of Ireland
Updated: July 2026
The Irish tax system is administered by the Revenue Commissioners under law set annually by the Finance Act that follows each October budget. Three taxes do most of the lifting: income tax on earnings, corporation tax on company profits, and VAT on spending. Between them they supply the large majority of Exchequer receipts, with everything else filling gaps and steering behaviour.
The three pillars
- Income tax (with USC and PRSI alongside) is the largest source, collected mostly through PAYE. Progressive by design: bands, credits and reliefs attach to the individual.
- Corporation tax has grown spectacularly on the profits of multinationals based here, to the point where its concentration in a handful of companies is treated as a national risk. The 12.5% rate, and the 15% minimum now applying to the largest groups, carry a reputation examined on the tax haven debate page.
- VAT supplies roughly a fifth of receipts, collected through registered businesses at the five Irish rates. It is the steadiest of the three: spending holds up better than incomes or corporate profits when the cycle turns.
The supporting cast
Excise and carbon tax raise revenue while discouraging what they tax. Capital gains tax and capital acquisitions tax, both at 33%, cover disposals and inheritances. Stamp duty taxes property and share transactions, local property tax funds councils, and customs duty at the EU frontier mostly passes through to Brussels. The direct and indirect pages sort the full list by mechanism.
What is distinctive about the Irish mix
Three things stand out internationally. The corporation tax take per head is extraordinary and extraordinarily concentrated. The income tax system is unusually progressive, with a large share of earners outside the net entirely and a high marginal rate arriving at a modest income. And the VAT system carries one of Europe's broadest zero rates, a legacy holding that EU law would not permit Ireland to create today. Each is a deliberate choice with a constituency, which is why each survives budget after budget.
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Common questions
What are the main taxes in Ireland?
Income tax with USC and PRSI, corporation tax and VAT are the three largest revenue sources. Excise duties, capital gains tax, capital acquisitions tax, stamp duty, local property tax, carbon tax and customs duty make up most of the rest.
What share of Irish tax revenue comes from VAT?
Roughly a fifth of Exchequer tax receipts in recent years, making VAT one of the three pillars of the system alongside income tax and corporation tax.
Who sets Irish tax law?
The Oireachtas, through the annual Finance Act that implements each October's budget. The Revenue Commissioners administer and collect the taxes but do not set the rates.