If welfare is your only income, you usually pay nothing, because you also get the Employee Tax Credit. Tax bites when you have a job or a private pension too.
Quick facts
- USC and PRSI
- Not charged
- Taxed at source?
- No, via your credits
- Extra credit
- Employee Tax Credit
- Jobseeker's Benefit
- First €13 a week tax-free
- Not taxed
- JA, DA, Child Benefit, WFP, Fuel Allowance
Why many people pay nothing
"Even if your social welfare payment is taxable, you may not actually have to pay tax on it. This is because 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."
"In general, you don't pay Universal Social Charge (USC) and social insurance (PRSI) on social welfare payments."
Which payments are taxed
- "State Pension (Contributory) Taxable State Pension (Non-Contributory) Taxable"
- "Carer's Allowance Taxable Carer's Benefit Taxable"
- "Illness Benefit Taxable (except for the Child Support Payment) Invalidity Pension Taxable"
- One-Parent Family Payment, Maternity, Paternity and Parent's Benefit, and the Bereaved Partner's Pensions
- Jobseeker's Benefit: "You do not pay tax on the first €13 per week of Jobseeker's Benefit and Jobseeker's Benefit (Self-Employed) ."
Which aren't
- "Jobseeker's Allowance Not taxed"
- "Disability Allowance Not taxed"
- "Child Benefit Not taxed"
- "Working Family Payment (formerly Family Income Supplement) Not taxed Fuel Allowance Not taxed"
- Domiciliary Care Allowance, Farm Assist, the Household Benefits Package and Supplementary Welfare Allowance
How the tax is collected
"The Department of Social Protection does not take any tax from your social welfare payment before it is paid to you." "Social welfare payments are taxed by reducing your tax credits and rate band." So tax comes out of your wages or private pension instead.
"If your social welfare payment was not 'coded in', you would have to pay tax as a self-employed person and in a lump sum by 31 October each year." Check your tax credit certificate in myAccount.
Common questions
Is Carer's Allowance taxable in Ireland?
Yes, Carer's Allowance is taxable, though with no other income you usually pay nothing because of your tax credits.
Is Jobseeker's Allowance taxable?
No. Jobseeker's Allowance is not taxed. Jobseeker's Benefit is taxable after the first €13 a week.
Is the State Pension taxable in Ireland?
Yes, both the Contributory and Non-Contributory State Pension are taxable, collected through your other income's tax credits.
Do you pay USC on social welfare?
No. In general you don't pay USC or PRSI on social welfare payments.