One of the most common questions we receive from international hires at Recruitroo is: "How much of my salary will I actually take home?" Understanding the tax landscape in a new country is vital for budgeting your life abroad. Both the UK and Ireland use a "Pay As You Earn" (PAYE) system, where your employer deducts tax directly from your salary before it hits your bank account. In 2026, while the systems are broadly similar, the specific rates and "social insurance" contributions differ in key ways.
Taxation in the UK: Income Tax and NI
In the UK, your salary is subject to two main deductions: Income Tax and National Insurance (NI). Most residents have a "Personal Allowance"—an amount you can earn each year tax-free. For the 2025/2026 tax year, this remains at £12,570 for most people. Earnings above this are taxed at the Basic Rate (20%), the Higher Rate (40%), or the Additional Rate (45%).
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National Insurance (NI): This is a mandatory contribution that pays for the state pension and certain benefits. It is deducted at a percentage of your weekly or monthly earnings above a certain threshold.
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Tax Codes: HMRC issues you a tax code (e.g., 1257L) which tells your employer how much to deduct. If you are on an "Emergency Tax" code, you may pay more initially, but this is corrected automatically once your record is updated.
Taxation in Ireland: Income Tax, USC, and PRSI
The Irish system includes three distinct pillars of deduction, which were updated in the 2026 Budget to reflect the rising cost of living:
- Income Tax: Ireland uses two rates: 20% (Standard Rate) up to a certain threshold, and 40% (Higher Rate) on the balance. Unlike the UK, Ireland uses "Tax Credits" to reduce your total tax bill.
- Universal Social Charge (USC): A tiered tax on gross income. For 2026, the thresholds have been adjusted to ensure that those on the National Minimum Wage pay very little USC.
- PRSI (Pay-Related Social Insurance): This is Ireland's version of National Insurance. Most employees are on "Class A," which provides access to the state pension, illness benefits, and maternity pay.
The Importance of Registration
To ensure you are taxed correctly, you must register with the local tax authority as soon as you arrive. In the UK, this happens largely through your National Insurance Number application. In Ireland, you must register your employment through the "myAccount" portal on Revenue.ie using your PPS Number. Failure to do this will result in "Emergency Tax," where you could be taxed at the highest possible rate (up to 40% or 50% depending on the country) until your status is verified.
Expert Advice: "Keep your first few payslips safe. If you have been overcharged tax during your first month, Recruitroo can help you navigate the refund process with HMRC or Revenue to ensure you get your money back in the next pay cycle." — Emma Fitzgerald, Relocation Advisor.
Financial Transparency with Recruitroo
We believe in "no surprises" when it comes to your salary. The Recruitroo platform features a built-in "Net Pay Calculator" that factors in current 2026 tax bands, pension auto-enrolment, and social insurance for both the UK and Ireland. This allows you to see your estimated take-home pay before you even sign your contract. We empower you with the data you need to plan your new life with confidence.
Curious about your take-home pay? Book a demo to see our tax tools. Candidates can explore roles and salary ranges at Recruitroo.com/candidates. Visit Recruitroo.com for more financial guides.