Enter your day or hourly rate and compare net take-home across all three Irish contractor structures: PAYE umbrella, umbrella director, and sole trader. Full Income Tax, USC, and PRSI breakdown using 2026 Revenue rates, including pension, marital status, and a permanent equivalent salary indicator.
Rate type
220 days = 44 billed weeks, allowing for holiday & downtime
Common day rates:
Reduces income tax base only — not USC
Equipment, travel, training — deducted before all tax
Default €150/month. Deducted from contract revenue before tax.
Annual take-home
€58,486
59.1% retention
Monthly take-home
€4,874
after all tax & deductions
Retention rate
59.1%
Net ÷ gross contract revenue
Permanent equivalent salary
€87,341
PAYE gross for same net take-home
Where the money goes
39.1%
Effective tax rate
Tax + PRSI as % of gross revenue
59.1%
Retention rate
Net take-home as % of gross revenue
€87,341
PAYE equiv. salary
Permanent employee gross for same net
Uses 2026 Irish Revenue rates with blended PRSI (9 months pre-Oct / 3 months post-Oct 2026 uplift). PAYE umbrella: employer PRSI at 11.29% (blended) on earnings above €552/week; Class A employee PRSI at 4.24% (blended) with tapered credit for weekly earnings €352–€424. Sole trader / Director: Class S PRSI at 4.24% (blended), minimum €650 if income ≥ €5,000; USC 11% surcharge applies above €100,000 income. Pension contributions reduce income tax base only — not USC. Assumes single person standard credits unless tax status is changed. This is an estimate only — consult a qualified Irish contractor accountant before making decisions.
As an Irish contractor, the two most common structures are PAYE umbrella and sole trader. A third option, operating through a private limited company, is popular for longer engagements because Ireland's 12.5% corporation tax rate is one of the lowest in Europe, but it requires more planning and an accountant.
The biggest single factor separating sole trader and PAYE take-home is Employer PRSI. When you work through an umbrella, the umbrella pays Employer PRSI (up to 11.05%) out of your contract rate before you see a salary figure. As a sole trader, there is no employer, you pay Class S PRSI (4%) on your net profit instead.
Sole traders also lose the Employee (PAYE) Tax Credit of €2,000 and replace it with the Earned Income Credit of €1,875. The €125 difference is small compared to the Employer PRSI saving at most day rates.
Sole traders generally take home more because they avoid employer PRSI (up to 11.05%) being deducted from their contract rate before tax. However, sole traders bear more administrative responsibility, you must file a Form 11 self-assessment return each year, keep records, and pay preliminary tax. PAYE umbrella is simpler but results in lower net pay at most day rates.
In Ireland, Employer PRSI is the employer's contribution to the Social Insurance Fund. When you work through a PAYE umbrella, the umbrella is your employer and deducts Employer PRSI, 8.8% if your weekly salary is ≤€441, or 11.05% above that, from your contract rate before calculating your gross salary. This is why PAYE umbrella take-home is lower than sole trader despite the same day rate.
Self-employed people in Ireland pay Class S PRSI at 4% on all income, with a minimum annual payment of €500. Unlike employees (Class A, 4.2%), there is no weekly earnings threshold below which you are exempt. Class S PRSI entitles you to certain social welfare benefits including the State Pension (Contributory) and Maternity Benefit, but not Jobseeker's Benefit.
Self-employed individuals and proprietary directors who do not qualify for the Employee (PAYE) Tax Credit can instead claim the Earned Income Credit, worth €1,875 in 2026. This is slightly less than the Employee Credit (€2,000), meaning sole traders have a marginally higher income tax liability on the same income compared to PAYE employees, before accounting for employer PRSI differences.
Sole traders can deduct wholly and exclusively business expenses from their gross income before calculating Income Tax, USC, and PRSI. Common deductible expenses include accountancy fees (typically €1,500–€3,000/year), professional subscriptions, equipment, software, training, and business travel. Personal expenses are not deductible. Revenue.ie publishes detailed guidance on allowable expenses for the self-employed.
Some Irish umbrella companies offer a 'director' arrangement where you are appointed as a director of a personal service company or the umbrella's subsidiary. In this structure you pay Class S PRSI (self-employed rate, 4.2% rising to 4.35% from 1 October 2026) rather than Class A. You also use the Earned Income Credit (€2,000) instead of the Employee Tax Credit (€2,000), the same value in 2026. Critically, there is no Employer PRSI deducted from your contract rate as there would be under PAYE, so more of your gross rate reaches you before personal tax. The USC 11% surcharge also applies to income above €100,000 as you are classified as self-employed / non-PAYE.
Yes. An Irish private limited company pays corporation tax at 12.5% on trading profits, one of the lowest rates in the EU. However, when you take money out as salary or distributions, you pay income tax, USC, and PRSI at your marginal personal rates (with a credit for corporation tax already paid). The main benefit of a limited company is tax deferral: leaving profits in the company at 12.5% and drawing them down strategically over time, or making company pension contributions that reduce corporation tax. The 'Umbrella Director' structure in this calculator approximates the Class S / non-PAYE treatment at the personal level. A full limited company analysis requires a qualified accountant.
