Bonus Tax Calculator Ireland 2026
Find out exactly how much cash you keep from your annual bonus, commission, or overtime after Income Tax, USC, and PRSI.
2026 rates verified
Your Salary & Bonus Details
Your regular annual gross pay before bonus
One-off bonus, commission, or overtime amount
Disclaimer: This calculator provides estimates only and does not constitute professional tax advice. Figures are based on Revenue.ie guidelines for tax year 2026. Individual circumstances vary — always consult a qualified tax advisor for advice specific to your situation.
Take-Home on €5,000 Bonus
Gross Bonus
€5,000
Total Tax Deducted
€2,368
Marginal Tax Hit
47.3%
Pension AVC
€0
Where the Bonus Goes (Tax Breakdown)
Payslip Impact: Normal Month vs Bonus Month
Comparing standard monthly take-home against the month your bonus is paid
| Item | Normal Month | Bonus Month | Difference |
|---|---|---|---|
| Gross Earnings | €4,167 | €9,167 | +€5,000 |
| Income Tax (PAYE) | €600 | €2,600 | +€2,000 |
| USC | €86 | €236 | +€150 |
| PRSI | €181 | €399 | +€218 |
| Net Cash Deposited in Bank | €3,299 | €5,932 | +€2,633 |
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How are Bonuses & Commission Taxed in Ireland? (2026 Rules)
In Ireland, there is no special "bonus tax rate". The Irish Revenue Commissioners (Revenue.ie) treat bonuses, commissions, cash gifts, and overtime as regular gross employment income.
Why Does Tax on a Bonus Feel So High?
Many employees are shocked when almost 50% of their bonus disappears on their payslip. Here is why:
- Standard Rate Cut-off is already used up: If your base salary is above €44,000 (for a single person in 2026), all of your standard 20% tax band and personal tax credits have already been absorbed by your monthly salary. Therefore, 100% of your bonus is taxed at the 40% higher income tax rate.
- PRSI & USC on top: You also pay 4.35% PRSI (Class A) and between 3% and 8% USC on the bonus.
- Combined Marginal Rate: 40% (Income Tax) + 8% (USC) + 4.35% (PRSI) = 52.35% total marginal tax deduction.
Ways to Legally Minimise Tax on Your Irish Bonus
- Pension AVC Bonus Sacrifice: You can request your employer to pay some or all of your bonus directly into your occupational pension or PRSA as an Additional Voluntary Contribution. This completely avoids 40% income tax.
- Small Benefit Exemption (€1,000 Tax-Free): Employers can give employees up to two non-cash tax-free benefit vouchers (e.g. One4all or Me2You card) per year up to a total maximum value of €1,000 completely free of Income Tax, USC, and PRSI.
Revenue.ie Statutory Rates
Calculations strictly align with the Finance Act 2025/2026 and official rate schedules published by the Irish Revenue Commissioners.
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Formulas designed and verified by a qualified Chartered Accountant (ACA) for Bonus Tax Calculator.
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