Effective tax rate for self-employed in Ireland

Valmont

Hello, I'm an IT contractor and have been living in the UK for a long time but could conceivably move to Ireland since all my work has been remote for a few years now. I'd love to move my young family home to Ireland but I'm unsure how much tax I'd be paying as % of my daily rate. I wonder does anyone have any rough ideas of how harshly the self-employed are taxed in Ireland? I contacted a friend in Carlow and he said it's basically 50% of your daily rate, all in. Thank you in advance.

Gloomtastic!

There are lots of tax calculators out there, try this one….

https://download.pwc.com/ie/budget-2024/income-tax-calculator.html

Mrs OBumble

When you also factor in the cost ofliability insurance and coveting your own leave, training etc the 50% is close enough.

Tow

It is actually 52/5% but various allowances will reduce that. You would want to be keeping 50% aside for taxes and think of anything less as a bonus back, after you have done your tax returns.

Mick Tator

You cannot look at personal taxation in isolation before moving to another country. Costs of education, healthcare, transport vary considerably between different countries and the cost (and availability) of housing varies within destinations. Many rural towns now have 'hubs' that are ideally suited to WFH people who periodically need office facilities.You also need to factor in lifestyle and other benefits/disadvantages.

crybaby

I moved to Ireland a while back and had a similar concern. The tax rate can be pretty high for self-employed people, but it’s not exactly 50%. You’ve got income tax, PRSI, and USC all adding up. I’d recommend chatting with an accountant here—they can give you a clearer picture of what to expect and help with any deductions you might qualify for. It’s definitely worth getting the details sorted before you make the move.

dave3t

Welcome back to the idea of moving to Ireland! As a self-employed individual in Ireland, your tax rate will depend on your total income, but here's a rough breakdown:

1. Income Tax: The standard rates are 20% on income up to €40,000 (for single individuals) and 40% on income above that.
2. USC (Universal Social Charge): This is an additional charge that ranges from 0.5% to 8%, depending on your income level.
3. PRSI (Pay Related Social Insurance): As a self-employed person, you'll pay 4% on your income.

When you combine these, your overall tax rate could indeed be around 50% for higher earners, especially when accounting for USC and PRSI.

To get a more accurate picture, consider using an online tax calculator or consulting a tax professional who can provide tailored advice based on your specific situation and income level. Good luck with your potential move!