Income Tax & PAYE

The collection of Income Tax is the responsibility of the Revenue Commissioners, who operate under the authority of the Minister for Finance. Teachers’ income tax is assessed under the Pay As You Earn (PAYE) system. The amount of tax deducted is based on the ‘taxable income’ of an individual in the year of assessment.

The tax year commences on 1 January each year and runs until the 31 December.

Taxable Income

Income tax is not deducted from total gross earnings. Contributions to the Superannuation Scheme are automatically deducted before PAYE is applied. (Tax relief is also allowed on AVCs subject to certain revenue limits). Tax Saver Commuter Tickets, where relevant, are also deducted at source. All teachers registered with the Teaching Council can claim a tax credit of €65 for the annual registration fee.

Employment Detail Summary

At the end of each tax year your employer must give you a certificate of pay and of the tax and PRSI deducted by him or her during the year. It is your record of:

  • the pay you received from your employer
  • the tax deducted under PAYE and
  • the PRSI contributions deducted.

As part of the PAYE modernisation, P60s have been abolished and replaced with an online system since 1 January 2020. The Employment Detail Summary replaces the P60 and is available to you through Revenue’s myAccount service.

The Employment Detail Summary contains details of your salary and statutory deductions as reported by the DE. To view the Employment Detail Summary, you must register with the Revenue myAccount Service. Once logged in, you can access the document under the “Review your tax” link in “PAYE Services”.

You can create a document to view or print which can be used as proof of income where required by third parties. There is a facility to send the PDF directly to a bank or financial institution with a secure access code, which enables the financial institution to securely view the information. This facility also eliminates the requirement for the Department to issue financial statements required for banks and other financial institutions.

Rates of Income Tax

The rates of tax deducted on ‘taxable income’ may vary from year to year and are generally adjusted in the Budget. There are currently two tax bands, referred to as the standard rate (20%) and the higher or marginal rate (40%).

Page updated 17 July 2024

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