How Does Budget 2026 Affect Your Take-Home Pay?
Enter your salary and see a side-by-side comparison of your 2025 vs 2026 net pay — the USC saving and the PRSI increase mostly cancel out. Find out the figure for your salary.
Budget 2026, announced in October 2025, took a targeted approach to personal tax rather than the sweeping changes of Budget 2025. The single meaningful change to take-home pay is the widening of the USC 2% band ceiling from €27,382 to €28,700 — worth up to €13.18 a year to anyone earning above that threshold. Income tax bands (€44,000 single / €53,000 married), personal tax credits, the PAYE credit and the Earned Income Credit are all unchanged from 2025.
That saving is more than offset by the legislated PRSI roadmap: employee Class A PRSI rose from 4.1% to 4.2% for most of 2026, and rises again to 4.35% from 1 October 2026. For most PAYE workers, the net effect is a small annual reduction in take-home pay — typically €20–€60 a year depending on salary, as the worked examples below show. Enter your own salary above for your own figure.
Worked Examples: 2025 vs 2026 Take-Home Pay
Single, PAYE employee, no pension contribution
| Gross Salary | 2025 Net Pay | 2026 Net Pay | Change |
|---|---|---|---|
| €30,000 | €26,317 | €26,296 | €-21 |
| €45,000 | €37,048 | €37,010 | €-37 |
| €55,000 | €42,335 | €42,287 | €-49 |
| €70,000 | €50,267 | €50,201 | €-66 |
| €90,000 | €59,844 | €59,756 | €-88 |
Figures use 2026 rates from our tax engine and the pre-Budget 2026 (2025) rates for comparison. Married couples and the self-employed will see slightly different figures — use the calculator above for your own circumstances.
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What Changed in Budget 2026?
| Tax | 2025 | 2026 | Change |
|---|---|---|---|
| USC 2% band ceiling | €27,382 | €28,700 | +€1,318 |
| USC rate (€28,700–€70,044) | 3% | 3% | — |
| PRSI employee rate | 4.1% (4.2% from Oct) | 4.2% (4.35% from Oct) | +0.1% |
| Income tax bands | Unchanged | Unchanged | — |
| Tax credits | Unchanged | Unchanged | — |
Frequently Asked Questions
What changed in Budget 2026 for personal tax?
The main personal tax change is the USC 2% band widening from €27,382 to €28,700. Income tax bands, personal tax credits, the PAYE credit and the Earned Income Credit were all left unchanged from 2025.
How much extra will I take home in 2026?
For most PAYE workers, take-home pay is actually slightly lower in 2026, not higher. The USC band widening saves up to €13.18 a year, but employee PRSI rose from 4.1% to 4.2% for most of 2026 (4.35% from 1 October), which outweighs the USC saving for most salaries — typically a net reduction of €20 to €60 a year. Use the comparison tool above with your own salary for a figure based on your own salary.
Did tax credits change in Budget 2026?
No. The personal tax credit (€2,000 single), PAYE credit (€2,000) and Earned Income Credit (€2,000) are all unchanged from 2025.
When did Budget 2026 changes take effect?
Most changes, including the USC band widening, took effect from 1 January 2026. The PRSI increase to 4.35% takes effect separately, from 1 October 2026.
Does Budget 2026 affect the self-employed differently?
The USC band change and the PRSI roadmap both apply equally to Class S (self-employed) PRSI. Self-employed workers also continue to claim the Earned Income Credit instead of the PAYE credit, as in prior years.
Want the full picture, including EV BIK and investment fund tax changes?
Read the Full Budget 2026 Guide
Every Budget 2026 Tax Change →