Worth
Up to €2,000 for 2026
It is easy to assume this credit stops when you retire. It doesn't. If your pension is taxed through PAYE, the credit usually comes with it.
Quick facts
- Worth
- Up to €2,000 for 2026
- Full amount
- PAYE income of €10,000 a year or more
- Below €10,000
- 20% of that income
- Couples
- One each, if both have PAYE income
- Claim
- Revenue myAccount, PAYE Services
Who can get it — the full rules
Revenue says: "You can claim the Employee Tax Credit if you receive income that is taxable under the Pay As You Earn (PAYE) system." That includes "occupational pensions and Department of Social Protection (DSP) income".
So a work pension counts. So does a taxable social welfare payment. Citizens Information lists the State Pension as taxable: "State Pension (Contributory) Taxable State Pension (Non-Contributory) Taxable". And "when you get a social welfare payment, you also get an Employee Tax Credit (previously called a PAYE tax credit), in addition to your normal tax credits."
If you are married or in a civil partnership and both of you have PAYE income, Revenue says "you are both entitled to claim the credit". "You cannot transfer the credit to your spouse or civil partner."
How much it is worth
"The maximum employee tax credit for 2026 is €2,000." "If your yearly employment or pension income (PAYE income) is €10,000 or more, you will be entitled to the full amount." "If your PAYE income is below €10,000, then the amount of the credit is capped at 20% of this income."
A credit is not cash. "Tax credits reduce the amount of tax you pay." So what it is worth to you depends on the tax you pay. "if a social welfare payment is your only source of income, you may not have to pay tax because the amount you owe in tax is less than your tax credits."
"You are only entitled to one Employee Tax Credit no matter how many employments you have."
How to claim it
Sign in to Revenue myAccount
Revenue says: "Use myAccount to claim this credit on the 'PAYE Services' card."
Claim it for this year
Under PAYE Services, choose 'Manage your Tax for the current year', then 'Claim tax credits'.
Missed it? Go back four years
"Click on the 'Review your Tax for the previous 4 years' link under 'PAYE Services'." Then request a Statement of Liability and complete the Income Tax Return.
Add the credit
"On the 'Tax Credits & Reliefs' page, select 'Your job' and add it as a credit."
Things to watch
If you get an increase for a qualified adult on your payment, the credit is yours, not your partner's. Citizens Information: "The Employee Tax Credit is given to the person claiming the social welfare payment and not to the adult dependant".
Check your tax credit certificate in myAccount. If you are married and both of you have PAYE income, it should show a credit for each of you.
Common questions
Do pensioners get the Employee Tax Credit?
Yes, if the pension is taxed through PAYE. Revenue says the credit covers occupational pensions and Department of Social Protection income.
Is the State Pension taxable?
Yes. Citizens Information lists both the State Pension (Contributory) and the State Pension (Non-Contributory) as taxable.
Can my spouse and I both get it?
Yes, if both of you have PAYE income. Each of you claims your own, and it cannot be transferred.
Can I claim it for past years?
Yes. In myAccount, use 'Review your Tax for the previous 4 years'.