Tax on Income from Part-Time Work

The rate and threshold indicated are applicable as from 1 January 2022.

What are the benefits of the part-time rate of tax?

An individual who works part-time is taxed at a fixed rate of 10%. This tax is final, therefore the income derived from part-time work need not be declared in the annual income tax return because it is not subject to further tax.

Is the 10% rate applicable on all of the part-time income, whatever the amount earned?

No, it is only applicable up to a maximum of €10,000 per annum in the case of part-time employment and to a maximum €12,000 per annum in the case of part-time self-employment. If the part-time income exceeds these amounts you will have to declare the excess in your tax return.

Example: If your part-time income from employment was €15,000, you pay 10% on the first €10,000. On the remaining €5,000 you will be taxed at the normal rates, and if you are a non-filer the €5,000 will be shown in your tax statement. If you submit the tax return, all you have to do is attach the FS3 and declare the € 5,000 under employment. If the €15,000 part-time is from self-employment you must declare €3,000 in your tax return.

In the case of a married couple, if both spouses qualify for the benefit, they are entitled to €10,000 each (employment) or €12,000 each (self-employment).

Who can benefit?

The following may benefit from the 10% rate:

• full-time employees; or
  
• pensioners; or
  
• full-time students (including apprentices).
  

This is the most basic condition that must be fulfilled. If this condition is not satisfied you cannot qualify for this rate of tax.

Does this mean that if I only work part-time and I do not have a full-time job, I do not qualify?

If a single person has a part-time job but is not employed full-time, that person does not qualify for the benefit. However you can still qualify if you are a pensioner or a full-time student.

If an individual is married, even though that person only works part-time, he/she may benefit from the part-time rate, as long as the husband or wife has a full-time employment or is a pensioner or is a student/apprentice.

Must the part-time work necessarily be from employment?

No. As long as you qualify you can benefit from the 10% rate:

on part-time employment – see here or

on part-time self-employment – see here​.