Emergency Tax in Ireland 2025

Starting a new job in Ireland should be exciting, but for many employees, it comes with an unwelcome surprise: emergency tax. This is when Revenue temporarily deducts more tax than necessary from your wages because your employment isn’t properly registered.

While emergency tax is not permanent, it can leave you out of pocket for weeks or months - sometimes thousands of euro. Refunds are possible, but waiting on Revenue or your employer can be frustrating and stressful.

At Irish Tax Hub, we help employees, contractors, and expats avoid or resolve emergency tax quickly. This guide explains:

• What emergency tax is and how it works
• Why it happens and how to prevent it
• How to get a refund if you’ve already been affected
• Special scenarios like multiple jobs, contractors, and returning emigrants
• Real-life examples showing how much you could lose
• How Irish Tax Hub can ensure you never suffer emergency tax again

What Is Emergency Tax in Ireland?

Emergency tax is a default taxation system used by Revenue when they don’t have enough information to apply your correct tax credits or standard rate cut-off points (SRCOP). In simple terms, Revenue assumes the worst case scenario until you or your employer provide the missing details.

This can happen when:

• You don’t provide your PPSN (Personal Public Service Number)
• Your employer hasn’t registered your job with Revenue
• You haven’t registered your first employment through MyAccount
• Revenue systems haven’t updated in time before your first payroll run

The result? Your take-home pay is significantly reduced because your tax credits and standard rate band are not applied.

Emergency Tax Rates Explained

Revenue applies emergency tax in one of two ways depending on whether you supplied your PPSN:

✅ Case 1: PPSN Provided, But Job Not Registered

• First 4 weeks: Income up to the standard rate cut-off (approx. €846 per week in 2025) taxed at 20% and anything above that taxed at 40%
• After 4 weeks: All income taxed at 40%

✅ Case 2: No PPSN Provided

• All income taxed at 40% immediately
• Emergency USC applied at a flat 8%

This means if you earn €900 per week:

• With PPSN but unregistered: €360 deducted after week 5 (40% of €900)
• Without PPSN: €360 deducted from week 1

On top of that, USC (8%) and PRSI contributions apply, leaving you with far less net pay than expected.

Example: How Much Can You Lose?

Let’s compare two new employees:

• Mary: Starts her first job in Dublin at €45,000 salary, but doesn’t register on MyAccount.
• John: Same salary, but properly registers his job.

Mary’s first month on emergency tax:

• Gross pay: €3,750
• Emergency tax at 40%: €1,500
• USC at 8%: €300
• PRSI: €150
• Net pay: €1,800

John’s first month with proper registration:

• Gross pay: €3,750
• Standard rate applied up to €3,462 at 20% = €692
• Balance taxed at 40% = €115
• USC at 4.5% approx. = €169
• PRSI: €150
• Net pay: €2,624

👉 Difference in take-home pay: €824 lost in just one month due to emergency tax.

Multiply that over 3 - 4 months, and you could be down thousands.

Why Does Emergency Tax Happen?

Common reasons include:

1. First Job in Ireland – You never registered your PPSN or employment with Revenue.
2. Changing Jobs – Your previous employment wasn’t closed off or your new job wasn’t registered correctly.
3. Multiple Jobs – Credits not allocated correctly between two employments.
4. Returning Emigrants – PPSN inactive or not linked to Revenue’s PAYE system.
5. Contractors & Umbrella Workers – Employer obligations not fulfilled, especially for short-term contracts.
6. Late Payroll Processing – Employer ran payroll before RPN (Revenue Payroll Notification) was available.

How to Avoid Emergency Tax

Step 1 – Provide Your PPSN Immediately

Your PPSN is your key identifier with Revenue. Always give it to your employer before your first payroll run.

Step 2 – Register Your Job on Revenue MyAccount

Log in to Revenue MyAccount → PAYE Services → Add Job or Pension Details.

Step 3 – Confirm Employer RPN

Your employer must request and apply your Revenue Payroll Notification (RPN). This contains your tax credits and rate bands.

Step 4 – Split Credits If You Have Multiple Jobs

Use MyAccount to allocate credits across employments to avoid emergency tax.

Getting Off Emergency Tax

Once your job is registered, your employer applies the correct tax credits. Revenue automatically adjusts your payroll so future payslips are correct.

Refund Process

• If you stay with the same employer: overpaid tax is refunded via payroll in subsequent weeks.
• If you’ve left: refunds are claimed via your Income Tax Return (Form 12) or directly from Revenue.

Irish Tax Hub Service: We fast-track refund claims by filing adjustments immediately.

Edge Cases and Scenario Analysis

Multiple Jobs

Without proper allocation, one job could be taxed at emergency rates. For example:

• Main job: €35,000
• Side job: €15,000
  If credits are all applied to the main job, the side job may be fully taxed at 40%.

Irish Tax Hub Solution: We simulate your combined income and distribute credits optimally across employments.

Contractors and Umbrella Employees

Contractors often face confusion:

• Is the umbrella company registered as your employer?
• Are they applying RPNs correctly?
• Are foreign assignments exempt?

We specialise in reviewing contracting arrangements to avoid unnecessary emergency tax.

Returning Emigrants

If you worked abroad, Revenue may not have your PPSN active. Employers often can’t pull an RPN, leaving you emergency taxed.

Irish Tax Hub Fix: We reactivate your PPSN and register employment instantly, avoiding delays.

International Employees

Non-residents working less than 60 days may be exempt from PAYE. But if misclassified, they’ll be emergency taxed.

Irish Tax Hub Service: We liaise with employers and Revenue to secure exemptions where possible.

Emergency Tax FAQs

Q: How long does emergency tax last?
Until your job is registered and your RPN issued - often 2-4 weeks, but longer if not corrected.

Q: Can I get a refund of emergency tax?
Yes, through payroll if still employed, or directly from Revenue with the help of Irish Tax Hub if you’ve moved on.

Q: Is emergency tax avoidable?
Almost always. With proper registration, it can be prevented.

Q: What if I have two jobs?
You must split credits correctly to avoid one job being taxed at 40%.

How Irish Tax Hub Can Help

• Prevent Emergency Tax: We handle job registration end-to-end.
• Fix Ongoing Issues: We correct misapplied payroll tax and recover refunds.
• Multiple Job Optimisation: We allocate credits strategically to maximise net pay.
• Expat & Contractor Expertise: Specialist support for short-term assignments, umbrella employees, and returning emigrants.

Final Thoughts

Emergency tax is one of the most frustrating aspects of starting a job in Ireland. It can cost employees thousands in lost income and months of waiting for refunds.

But with the right guidance, it is completely avoidable.

At Irish Tax Hub, we go beyond just fixing emergency tax - we put you in control of your PAYE, ensuring you maximise credits, protect your cashflow, and plan strategically for long-term tax savings.

👉 Don’t let emergency tax eat your salary. Contact Irish Tax Hub today and get set up correctly from the start.