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This guide explains the common “52%” feeling on RSU vests. It is usually about marginal deductions on the extra amount (PAYE + USC + PRSI), plus payroll timing. Use it to sanity-check the story, not as a substitute for payroll or Revenue calculations.
The “52%” idea is typically the combined marginal deductions on extra pay: higher-rate PAYE plus USC and PRSI. If you are already above the standard rate cut-off, the extra euro can attract a higher share of deductions than your average annual rate.
That is why a vest can feel heavily taxed even when your annual effective rate is lower.
PAYE is often calculated on a cumulative basis. A large vest in one month can temporarily increase withholding, and later months may rebalance depending on your year-to-date position.
Use your payslip + vest statement + any sell-to-cover trade confirmation to confirm the story matches the documents.
If you are already in the higher-rate band, extra income can face higher-rate PAYE plus USC and PRSI. The combined marginal deductions on the extra amount can land around the low-50% range depending on your situation and payroll setup.
No. Irish tax is progressive. The “52% feeling” is usually about the marginal deductions on the extra amount (like the RSU vest), not your entire annual income.
Yes. Payroll withholding is often an estimate for that pay period. Later payslips and year-end balancing can change the final position depending on your full-year income and credits.
Sometimes. Pension contributions can reduce PAYE taxable pay in many common setups, but the interaction with RSU withholding depends on timing and employer processing. Treat this as scenario planning and confirm limits.