Tax Credits

Taxpayers are allowed a portion of their salary free of deductions from income tax. The amount of each individual’s tax credits varies depending on the number of allowances/reliefs they are entitled to.

Therefore, in calculating the amount of tax payable on salary, superannuation contributions and tax credits are deducted from gross earnings. The balance or ‘taxable income’ is taxed at the applicable rate(s) of taxation.

Employees may also qualify for Flat Rate Expense (FRE) allowances.

FRE allowances are those that cover certain employment related expenses, including statutory registration fees. These expenses must:

  • be incurred by an employee in performing the duties of their employment; and
  • directly relate to the nature of their employment.

Teachers’ Flat Rate Expenses

Primary & Secondary Level
Principal Teachers €608
Other Teachers (includes part-time teachers on full hours)In addition to the above:

All teachers registered with the Teaching Council can claim a tax credit of €65 for the registration fee.

An allowance for teachers “engaged mainly in teaching general subjects but also doing part-time PE” of €126 is also available.*

The allowance is available only for fully qualified physical education teachers engaged in PE. The allowance is not available to teachers who do not have this qualification.

A claim must be submitted each year to benefit from an FRE allowance. This can be done using Revenue’s online service, myAccount:

  • Using the PAYE Services tab in myAccount, PAYE taxpayers can claim the FRE allowance in the current tax year. When an FRE allowance is claimed in a year, the relevant allowance is included on an amended Tac Credit Certificate and the benefit of the allowance is made through payroll.
  • Alternatively, PAYE taxpayers can claim the FRE allowance for previous tax years by completing an annual Income Tax return in myAccount.

Allowances for FRE and other employment expenses are taxed at the standard rate (20%).

Further guidance is available on the Revenue website.

Still have questions?

Submit your query by email to INTO. Please include your payroll number.