Earned Income Credit
A tax credit worth up to €2,000, or 20% of your qualifying earned income if that is lower.
Last checked July 2026
What it is
A tax credit for self-employed people and company directors who do not get the PAYE Employee Tax Credit. It is worth the lower of €2,000 or 20% of your qualifying earned income. Many sole traders do not realise they can claim it. If you also have PAYE income, the two credits together cannot come to more than the Employee Tax Credit.
Who can get it
- You are self employed, a sole trader or a proprietary director
- You have earned income that does not qualify for the Employee Tax Credit
- You are filing an Irish income tax return
- It is the lower of €2,000 or 20% of your qualifying earned income, so on smaller earnings you get less than the full amount.
- If you have PAYE income as well, the Earned Income Credit and the Employee Tax Credit together cannot exceed the maximum Employee credit.
- It is claimed on your return, which is why people who rush their October filing so often miss it.
How to apply
Applications go through Revenue. The official page has the full eligibility rules and the application itself.
Go to the official page →Checked against the official source on 26 July 2026. Always confirm the details on the official page before applying.
Questions people ask
How much is the Earned Income Credit?
The lower of €2,000 or 20% of your qualifying earned income.
Who can claim the Earned Income Credit?
The self employed, sole traders and proprietary directors, in other words people whose income does not attract the Employee Tax Credit.
Can I get both the Earned Income Credit and the PAYE credit?
You can hold both, but combined they cannot come to more than the maximum Employee Tax Credit.
How do I claim it?
Through your income tax return with Revenue.
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