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Contractor Take-Home Pay Calculator

Calculate your estimated net income as a contractor or sole trader in Ireland. Accounts for Income Tax, USC, PRSI, expenses, and corporation tax.

Your details

Your standard daily invoicing rate before any deductions.

Estimated number of days you will invoice clients in a full year.

Your legal and tax status. This determines which taxes apply.

Total deductible business expenses for the year (e.g., equipment, travel, home office).

Only for Limited Company: Annual salary you plan to pay yourself. The remainder is profit subject to Corporation Tax.

Your total personal tax credits for the year. Default is the standard single person credit for 2026.

Your category for Universal Social Charge. Most contractors are Category A.

The percentage fee charged by the umbrella company on your gross income. Typical range is 3-6%.

The estimated effective rate of Income Tax, USC, and PRSI deducted via PAYE by the umbrella company. This is an approximation; consult your umbrella provider for exact figures.

Result

Estimated Annual Net Income €62,605.22

Your estimated take-home pay after all taxes, expenses, and fees.

How it is calculated

Gross Annual Income Total income before any deductions.
€110,000.00
Taxable Income Income after deductible business expenses.
€102,000.00
Income Tax Payable Income Tax due after applying tax credits. Umbrella employees pay tax via PAYE.
€29,925.00
Universal Social Charge (USC) USC calculated on taxable income.
€5,389.78
PRSI Payable PRSI contributions. Sole traders pay Class S; limited company directors pay Class A on salary.
€4,080.00
Company Profit Before Tax Limited company profit subject to Corporation Tax.
€0.00
Corporation Tax Corporation Tax on company profits.
€0.00
Employer's PRSI Employer's PRSI due on salary paid by a limited company.
€0.00
Net Company Profit After Tax Profit retained in the company after Corporation Tax.
€0.00
Salary After Income Tax & PRSI Net salary after Income Tax, USC, and employee PRSI.
€0.00
Umbrella Company Fee Fee charged by the umbrella company.
€0.00
Estimated PAYE Deduction (Umbrella) Estimated Income Tax, USC, and PRSI deducted via PAYE by the umbrella company.
€0.00
Effective Total Tax Rate Total deductions as a percentage of gross income.
43.1 %
Keep in mind
  • This calculator provides an estimate based on standard tax rates and bands for 2026. Actual liability may vary based on your personal circumstances.
  • For a Limited Company, the calculation assumes you pay yourself a salary and the remaining profit is subject to Corporation Tax at 12.5%. Dividend taxation is not included.
  • The Umbrella Company calculation uses an estimated PAYE deduction rate. Your actual deductions will be determined by your umbrella provider. Adjust the 'Estimated PAYE Rate' input for a more accurate figure.
  • Tax credits, rates, and bands are subject to change in subsequent budgets. Always verify the latest figures with Revenue.ie.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

Prepare the document now

With the result already worked out, you can fill in the document right away.

Notice of Termination of Independent Contractor Agreement
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Irish Contractor Take-Home Pay Calculator 2026

This calculator helps contractors, freelancers, and sole traders in Ireland estimate their net income after tax for the 2026 tax year. Understanding your take-home pay is crucial for budgeting, setting your rates, and choosing the right business structure.

How Contractor Taxation Works in Ireland

Your net income depends on your legal structure:

  • Sole Trader (Self-Employed): You pay Income Tax, Universal Social Charge (USC), and Class S PRSI on your annual profits (income minus allowable expenses).
  • Limited Company: You are both an employee and shareholder. You pay yourself a salary (subject to Income Tax, USC, and Class A PRSI) and the company pays Corporation Tax on its profits. Employer's PRSI is also due on the salary.
  • Umbrella Company: You become an employee of the umbrella firm. They handle PAYE, USC, and PRSI deductions, and charge a fee for their services. Your net is your gross pay minus the fee and all employment taxes.

How the Calculation is Done

The calculator follows the official tax rules for 2026:

  1. Gross Income: Your daily rate multiplied by your billable days.
  2. Taxable Income: Gross income minus your deductible business expenses.
  3. Income Tax: Calculated using the progressive bands (20% up to €45,000, 40% above). Your personal tax credits are then subtracted.
  4. Universal Social Charge (USC): A separate charge on your income, calculated using progressive rates that depend on your income level and category.
  5. PRSI: Social insurance contributions. Sole traders pay Class S (4% on profits). Limited company directors pay Class A (4%) on their salary, and the company pays Employer's PRSI (11.05%) on the same salary.
  6. Corporation Tax: For limited companies, profits after salary are taxed at 12.5%.
  7. Net Income: The final amount you have left after all taxes, expenses, and (for umbrella) fees and PAYE deductions.

Worked Example: Sole Trader

Sarah is a sole trader IT consultant with a €500 daily rate, working 220 days a year. She has €8,000 in annual expenses and uses the standard tax credit.

  • Gross Income: €500 * 220 = €110,000
  • Taxable Income: €110,000 - €8,000 = €102,000
  • Income Tax: (20% on €45,000 = €9,000) + (40% on €57,000 = €22,800) = €31,800. Minus tax credit (€1,875) = €29,925.
  • USC (Category A): (0.5% on €14,004 = €70.02) + (2% on €14,004 = €280.08) + (4% on €21,992 = €879.68) + (8% on €52,000 = €4,160) = €5,389.78.
  • PRSI Class S: 4% of €102,000 = €4,080.
  • Total Tax & PRSI: €29,925 + €5,389.78 + €4,080 = €39,394.78.
  • Net Income: €102,000 (Taxable Income) - €39,394.78 = €62,605.22.

Next Steps and Important Documents

Once you have estimated your income, ensure your contracts and legal documents are in order. For contractors, a clear agreement is essential.

Consider using our Notice of Termination of Independent Contractor Agreement if you need to formally end a contract.

If you want to protect your client's business after the contract ends, a Non Compete Agreement between Independent Contractor and Client may be relevant.

Frequently Asked Questions

What expenses can I deduct as a sole trader?
You can deduct expenses wholly and exclusively incurred for your business. Common examples include office supplies, travel (not commuting), professional subscriptions, software, and a portion of home office costs.

Is it better to be a sole trader or a limited company?
It depends on your income level and long-term plans. At lower profit levels, being a sole trader is simpler. At higher levels (typically above €70,000-€80,000 profit), a limited company can be more tax-efficient, but involves more administration and costs.

How accurate is this calculator?
It provides a reliable estimate based on 2026 tax law. However, it cannot account for every personal circumstance, such as other income, married/civil partner credits, or specific reliefs. Always consult a qualified accountant for final tax planning.

What is the USC Category B?
Category B applies to individuals aged 70 or over who hold a full medical card. It has a lower top rate of USC (4% instead of 8%).

Why is Employer's PRSI not deducted from my net income in the limited company calculation?
Employer's PRSI is a cost to the company, deducted before calculating company profit. The 'Net Company Profit After Tax' already reflects profits after all company expenses, including Employer's PRSI. Therefore, it is not subtracted again when combining salary and profit for your total net income.

Frequently asked questions

What's the difference between a contractor and an employee?

A contractor typically works under a contract for services, controls how the work is done, provides their own equipment, and is responsible for their own taxes. An employee works under a contract of service, is subject to the employer's control, and has taxes deducted at source via PAYE.

Do I charge VAT as a contractor?

You must register for VAT if your annual turnover from taxable supplies exceeds or is likely to exceed €40,000. If you are below this threshold, registration is optional. This calculator does not include VAT.

Can I claim the home office expense?

Yes, if you work from home, you can claim a proportion of your household costs (heating, electricity, broadband) based on the size and usage of your workspace. The 'Annual Business Expenses' field in the calculator is where you would include this estimated amount.

How do I pay my taxes as a sole trader?

You must file an annual Form 11 Income Tax Return online via Revenue's Online Service (ROS). Preliminary Tax for the current year and the balance for the previous year are due by 31 October each year. You may also need to make Payments on Account.

What is the deemed payment for a limited company director?

If you are a director of your own company and take a very low or no salary, Revenue may apply a 'deemed salary' of €13,167 (2026 figure) for PRSI purposes. It's advisable to pay at least this amount as a salary to avoid this.

How do I find my exact umbrella company PAYE rate?

Contact your umbrella company provider. They can give you a detailed breakdown of the effective tax rate applied to your income, which includes Income Tax, USC, and PRSI. Use this figure in the 'Estimated PAYE Rate' input for a more precise calculation.

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