Legislative Updates for the Tax Year 2026
Here's the summary of legislative changes for Ireland for the tax year 2026.
Legislative updates 2026:
| Item | Updates |
|---|---|
| Income Tax Rates and Thresholds |
Tax rates, standard rate cut off points and tax credit remain unchanged. The Special Assignee Relief Programme (SARP) is extended to 31 December 2030, and the minimum basic annual salary requirement have increased. |
| Universal Social Charge (USC) |
USC rate 2 & 3 thresholds are increased effective 1 January 2026. The exemption threshold of €13,000 remains unchanged. There are revisions to annual USC cut off point rounding rules across payroll frequencies. |
| Pay Related Social Insurance (PRSI) |
The thresholds for Sub Class AL and Sub Class A1 have changed as a result of the increase in the National Minimum Wage (NMW) effective 1 January 2026. In addition, all PRSI Rates will increase by 0.15 % effective 1 October 2026. These changes are delivered as part of the budget update. |
| Benefit In Kind (Vehicle Benefit) |
The temporary universal reduction to the Original Market Value (OMV) of cars in categories A1-D and to all vans is extended on a tapered basis for another 3 years. The partial relief for electric vehicles will be applied to OMV from 1 January 2026. From 1 January 2026, a new business mileage rate category of A1 is added to calculate tax liability along with an CO2 emission range for the new category. |
| National Minimum Wage | Effective 1 January 2026, the adult National Minimum Wage rate has increased from €13.50 to €14.15 per hour. |
| State Pension (Contributory) Rate | The rate has increased effective 1 January 2026. |
| Standard Weekly Benefit Rates | The rates for illness benefit, maternity, adoption, parent's, paternity and health and safety have increased effective 1 January 2026. |
| Pensions | There’s no change to Additional Superannuation Contribution rates or thresholds. |
Stay compliant with legislative changes introduced for the tax year 2026 with the prescribed changes to rates and thresholds for Universal Social Charge (USC), Pay Related Social Insurance (PRSI), Benefit In Kind (BIK), state pension, weekly benefit rates and all other changes that will be effective from 1 January 2026.
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For more information, see Ireland Payroll Legislative Updates - 2026