Tax credits are a form of relief offered by the government to reduce the amount of tax you have to pay. Every PAYE worker is eligible for these and is guaranteed to receive at least the Personal Tax Credit and the PAYE Tax Credit.

However, there are various other tax credits available which may be applicable depending on your individual circumstances.


How do you receive tax credits?

On your first employment in Ireland, you’ll need to fill out an application form for a Tax Credit Certificate (Form 12A) and send it off to your local tax office. They’ll then send you out a statement of the tax credits that you are eligible for.

These credits will vary with every individual due to personal circumstances i.e. married, single, widowed etc.  Once your employer registers you with the tax office, these credits will be applied to your wages which in turn reduces the amount of tax you pay.


Why is the Certificate of Tax Credits and Standard Rate Cut-Off Point important?

This is essential, especially if you’re beginning your first job, as without either this statement, your employer has to apply the emergency rate of tax to your income. This amounts to your gross salary being charged at the higher rate of tax.

Tax credits are used to reduce your taxes so the more credits you are entitled to, the more income you take home.


How do you know what credits you’re entitled to?

Unfortunately, the Revenue Office does not apply all of the credits you’re entitled to and so you should research exactly what you can claim for.  Generally, they only assign the basic PAYE and Personal tax credits.

However, you may be eligible for additional tax credits for certain circumstances. For example, if you are a single parent or a stay at home parent (if married).


How long do you have to use tax credits?

If you’ve only just realised you could be entitled to a certain tax credit, you can also apply for tax back for these credits for the previous four tax years. Moreover, if you have multiple jobs, you can divide your tax credits between your employers.


Your money back

Think you may have overpaid tax in the last 4 years? Contact our team of tax experts at Irish Tax Rebates. We advise on tax relief applicable to your expenses and help you to get your money back in a matter of weeks.

We have the highest average tax rebate in Ireland and the lowest fee; and if you aren’t owed any tax back, there is no fee applied. To get the ball rolling, you can fill out our 60-second application form today:


New Customers: Apply here.

Existing Customers: Apply For Additional Rebate 


For more simple explanations of Irish taxation and how you may be due tax back, check out our tax resources.