Your total Income Tax + USC + PRSI from the prior year
Preliminary Tax Due
€26,732.57
Using 90% current year method
Total Tax Liability
€29,702.86
Effective Rate
31.3%
Net Income
€50,297.14
Tax Composition
Irish Pay & File System
Self-employed individuals in Ireland must pay preliminary tax by 31 October each year under the Pay & File system. You must also file your annual tax return (Form 11) and pay any balance due by the same date (with extensions for ROS filers).
Two Methods for Preliminary Tax
You can calculate preliminary tax using either: (1) 90% of your current year liability, or (2) 100% of your prior year liability. Paying at least one of these amounts avoids interest charges. The lower amount is generally preferable for cash flow.
Interest on Late Payment
If your preliminary tax is less than 90% of the current year liability (and also less than 100% of the prior year), Revenue charges interest at 0.0219% per day (approximately 8% per annum) on the underpayment.
Small Assessment Exemption
If your prior year liability was less than EUR 1 (after credits), you may not need to pay preliminary tax. However, it is still advisable to calculate and plan for your tax obligations.
Revenue-Aligned: Uses 2025-26 Irish tax rates, USC bands, and PRSI Class S at 4%. Due dates are indicative -- check Revenue.ie for exact deadlines.
How the advance tax payment system works for self-employed people
What is preliminary tax?
Preliminary tax is an advance payment towards your tax bill for the current year. If you are self-employed or have non-PAYE income, Revenue requires you to estimate and pay your tax before the year ends. It is like pay-as-you-go tax for people who do not have an employer deducting PAYE from their wages.
How much preliminary tax do I have to pay?
You must pay at least 100% of your previous year’s total tax liability or 90% of your current year’s liability, whichever you choose. For example, if you owed €15,000 in tax last year, you can pay €15,000 as preliminary tax this year and you will not be penalised, even if your actual bill turns out to be higher. Any underpayment is settled when you file your return.
When is preliminary tax due?
The deadline is 31 October each year for paper filers. If you file and pay through Revenue Online Service (ROS), you get an extension to mid-November (the exact date varies each year). This payment covers the current tax year. You also file your tax return for the previous year at the same time.
What happens if I pay preliminary tax late?
Revenue charges interest on late payments at 0.0219% per day (about 8% per year). There is no grace period. If your preliminary tax is due on 31 October and you pay on 15 November without using ROS, you owe interest for 15 days. You may also face a surcharge on your final tax return of 5% or 10% if you file it late.
Is there a minimum amount before I need to pay preliminary tax?
If your total non-PAYE income tax liability is under €1,000, you do not need to pay preliminary tax. This is called the small income exemption. However, you still need to file your annual tax return (Form 11). If your non-PAYE income is small, your employer might adjust your PAYE tax credits to collect the extra tax through your wages instead.
How do I pay preliminary tax?
The easiest way is through Revenue Online Service (ROS) at ros.ie. You can pay by debit card, single debit instruction, or direct debit. You can also set up monthly direct debits to spread the payment across the year, which many self-employed people find easier to manage. Paper cheques are still accepted but the deadline is earlier (31 October).
What if I overpay my preliminary tax?
If you pay more preliminary tax than your actual liability, Revenue will refund the difference after you file your annual return. Refunds are usually processed within 4 to 8 weeks after filing. You can also choose to have the overpayment applied as a credit towards next year’s preliminary tax instead of getting a refund.
Do I need to pay preliminary tax in my first year of self-employment?
Yes. Even in your first year, you must pay preliminary tax. Since you have no previous year’s liability to base it on, you need to estimate 90% of your current year’s tax. If you started mid-year, your income and tax will be lower, so your preliminary tax payment will be smaller. It is a common mistake for new sole traders to forget this.
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
Related Calculators
Freelancer Rate Calculator
Calculate your ideal hourly or daily rate factoring in PAYE, USC, and PRSI.
Invoice Calculator
Generate invoice totals with Irish VAT automatically calculated.
Self-Employed Tax Calculator
Calculate your total tax liability as a self-employed individual with Revenue.
Sole Trader Tax Calculator
Calculate income tax, USC, PRSI, and preliminary tax for Irish sole traders.