Preliminary Tax in Ireland (2026)

Preliminary tax is an advance payment of tax for the current year, due at the same time as your prior year return. It applies to all self-assessed taxpayers, which includes the self-employed, landlords, and anyone with significant non-PAYE income.

How Much Do You Pay?

You can calculate preliminary tax using either of two methods:

• 100% of the prior year: Pay the same amount of tax you owed last year. This is the safe option: even if your income rises, you will not be charged interest.
• 90% of the current year: Pay 90% of what you expect to owe for the current year. This is useful if your income is falling. But if you underestimate, interest applies.

Payment Deadline

Preliminary tax is due by 31 October for paper filers, or mid-November (typically 14 November) for ROS online filers. This is the same deadline as the prior year income tax return.

Penalties for Late Payment

Interest on late payment of preliminary tax runs at 0.0219% per day (approximately 8% per year). There is also a late filing surcharge of 5% of the tax due (up to EUR 12,695) if filed within 2 months of the deadline, rising to 10% (up to EUR 63,485) if later.

First Year of Self-Assessment

If this is your first year filing a self-assessed return, you cannot use the 100% prior year method (there is no prior year). You must estimate your current year liability and pay 90% of it by the deadline. Be conservative in your estimate to avoid interest charges.

Paying Through PAYE Credits

If your non-PAYE income is modest (for example, rental income of EUR 5,000 to EUR 10,000), you can ask Revenue to collect the tax by reducing your PAYE tax credits. This avoids having to make a lump-sum preliminary tax payment. Contact Revenue through myAccount or ROS to arrange this. It only works if the amount is manageable relative to your PAYE income.

What Happens If You Underpay

Interest on underpaid preliminary tax runs at 0.0219% per day (roughly 8% per year) from the due date. On a EUR 10,000 underpayment from 31 October, you would owe approximately EUR 548 in interest by the following October. There is also a late filing surcharge of 5% (up to EUR 12,695) if the return is filed within 2 months of the deadline, rising to 10% (up to EUR 63,485) after that.

Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.