260 weekdays minus public holidays, annual leave, and gaps between contracts
Day Rate (ex VAT)
€347.83
€427.83 inc. VAT
Hourly Rate (ex VAT)
€43.48
€53.48 inc. VAT
| Annual | Day Rate | Hourly |
|---|---|---|
| €50,000.00 | €217.39 | €27.17 |
| €70,000.00 | €304.35 | €38.04 |
| €80,000.00 (you) | €347.83 | €43.48 |
| €100,000.00 | €434.78 | €54.35 |
| €120,000.00 | €521.74 | €65.22 |
| €150,000.00 | €652.17 | €81.52 |
Day Rate Calculation
Your day rate is calculated by dividing your target annual income by the number of working days. For contractors in Ireland, this should account for annual leave (20 days minimum), public holidays (10 days), sick days, and gaps between contracts.
VAT on Day Rates
If you are VAT-registered (required over EUR 37,500 for services), add 23% VAT to your day rate when invoicing. The VAT component is not your income -- it is collected for Revenue and remitted via your VAT returns.
Irish Tax Deductions
Contractors in Ireland pay Income Tax (20%/40%), Universal Social Charge (USC), and PRSI. The effective rate depends on your total income, tax credits (such as the personal and PAYE credits), and filing status (single or jointly assessed).
Revenue-Aligned: Uses 2025-26 Irish tax rates. Day rate based on 8-hour working day.
How to calculate and compare day rates for contractors and freelancers
How do I work out my day rate from an annual salary?
Divide your target annual income by the number of billable days in a year. Most contractors work around 220 to 230 days per year (52 weeks minus holidays, sick days, and training). So a target take-home of €60,000 with 220 billable days means a gross day rate of roughly €400 to €500 per day, depending on your tax situation.
What is a typical day rate for contractors in Ireland?
Day rates vary a lot by industry and experience. IT contractors in Dublin typically charge €400 to €700 per day. Management consultants range from €500 to €1,000. Skilled tradespeople might charge €250 to €400. These rates need to cover your tax, PRSI, insurance, pension, and days when you are not working (holidays, gaps between contracts).
How much tax will I pay on my day rate?
As a self-employed contractor, you pay Income Tax (20% up to €42,000, then 40%), PRSI Class S (4%), and USC (0.5% to 8% in tiers). On a day rate of €500 and 220 days worked (€110,000 annual), after deducting expenses of say €10,000, your total tax would be roughly €34,000 to €38,000, leaving about €62,000 to €66,000 net.
Should I include expenses in my day rate?
Your day rate should cover all your costs, not just tax. Think about professional indemnity insurance (€300 to €1,000 per year), accountant fees (€500 to €1,500), pension contributions, equipment, training courses, and the days between contracts when you earn nothing. A good rule is to add 15% to 25% on top of what you would accept as a salary equivalent.
How many billable days should I plan for?
There are roughly 260 working days in a year (52 weeks times 5 days). Subtract at least 20 days for holidays, 5 for sick days, and 5 to 10 for training or admin. Most contractors realistically bill 220 to 230 days. If you are just starting out or work in a seasonal industry, plan for 200 days to be safe.
Do I charge VAT on top of my day rate?
If your annual turnover exceeds €42,500 for services, you must register for VAT and charge 23% on top of your day rate. So a €500 day rate becomes €615 on your invoice. Your client pays the VAT amount, and you pass it on to Revenue. Most business clients can reclaim the VAT, so it does not change the real cost to them.
How does a day rate compare to a permanent salary?
A rule of thumb is that your day rate should be at least 1.5 to 2 times the daily equivalent of a permanent salary. A €60,000 salary equals about €230 per day. As a contractor, you need at least €350 to €460 per day to match it, because you are covering your own holidays, pension, insurance, sick pay, and the risk of gaps between contracts.
Revenue-Aligned: Based on 2025 Revenue rates and thresholds. For personal advice, speak to a qualified tax adviser.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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