Commission: understanding marginal deductions

Commission can create spikes in marginal deductions in a high-earnings month. This page explains typical scenario behaviour for 2026.

Open the calculator Marginal deduction explainer

Why the payslip can jump

The commission pushes more income into higher marginal PAYE bands.
USC thresholds can be crossed within the period.
PRSI can also apply to the extra pay depending on PRSI class.

How to estimate

Run a base salary scenario.
Increase gross salary to represent expected total annual income with commission.
Compare the delta in net pay and the change in deductions.

FAQ

How is commission taxed in Ireland?

In many payroll setups, commission is treated as taxable pay. It can be subject to PAYE, USC and PRSI, depending on your circumstances and payroll settings.

Why does my commission month look more heavily taxed?

Commission often arrives as a one-off uplift in a month. That additional income can sit in higher PAYE and USC bands for the period, and PRSI may also apply.

How can I estimate my commission take-home pay?

Model a base scenario and a scenario with higher annual income. Compare the change in net pay and total deductions. Treat results as scenario estimates rather than payslip reconciliation.

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