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Professional Irish Financial Analysis • 2026
Generated On
22 July 2026
Note: This report is an estimate based on current Irish Revenue tax bands and provided inputs. For official tax advice, please consult a qualified professional or visit Revenue.ie.
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Gross Bonus
€5,000
Net Cash
€2,640
Tax
€2,360
Effective Rate
47.0%
Enter your base salary and bonus to estimate the net cash impact, tax allocation, and a pension contribution scenario based on Revenue-style limits.
Bonuses are taxed in the same period they are paid, which can push you into a higher marginal rate. This calculator estimates the tax due on your bonus and shows how pension salary sacrifice can reduce the bite.
Enter your base salary and bonus amount to see the tax, USC, and PRSI deductions on your bonus. Toggle pension salary sacrifice to see how redirecting part of your bonus into your pension changes your net bonus and adds to your retirement savings.
Net cash in hand
€2,640
Effective rate
47.0%
How your employer handles bonus pension contributions.
If you have RSUs vesting in the same year, consider reviewing the Equity & RSU tool to see combined marginal-rate impacts.
Estimate based on annual totals. Payroll withholding can differ due to timing and payroll setup.
Net bonus in pocket
Recommended mix€2,640
Effective tax rate
47.0%
Pension from bonus
€0
Estimated tax
€2,360
Set the percentage of your bonus to sacrifice directly into your pension via AVC (Additional Voluntary Contribution). Each euro contributed saves tax at your marginal rate.
Salary sacrifice
€0
Net cash in hand
€2,640
Pension from bonus
€0
Tax saved vs cash
€0
Recommended balanced mix: 50% AVC. Your current setting is -50pp below balanced.
January receipt keeps this bonus in the next tax year, avoiding USC band issues.
See how pension sacrifice compounds over time. Adjust growth assumptions below.
Year 1 net cash
€2,650
Year 5 net cash
€3,221
Pension pot (yr 5)
€0
Pension advantage
+-€14,643
| Year | Gross Bonus | Net Cash | Pension Contribution | Cumulative Cash | Pension Pot Value |
|---|---|---|---|---|---|
| 1 | €5,000 | €2,650 | €0 | €2,650 | €0 |
| 2 | €5,250 | €2,783 | €0 | €5,433 | €0 |
| 3 | €5,513 | €2,922 | €0 | €8,354 | €0 |
| 4 | €5,788 | €3,068 | €0 | €11,422 | €0 |
| 5 | €6,078 | €3,221 | €0 | €14,643 | €0 |
Projections are estimates, not guarantees. Bonus growth and investment returns are assumed and may vary. Pension growth is pre-tax and subject to future tax treatment at withdrawal.
Compare multiple bonus amounts or sacrifice strategies side by side.
What-If scenarios use local estimates and are for comparison purposes only. Actual tax outcomes depend on payroll timing and employer-specific rules.
Your bonus is taxed at an effective rate of 47%. By sacrificing 50% of your €€5,000 bonus to pension, you could save approximately €€1,175 in tax this year.
Quick estimate based on your inputs and standard Irish payroll rules. Updates automatically.
| Scenario | Cash in hand | Pension | Tax |
|---|---|---|---|
Would you rather have a €€5,000 bonus or a €€5,000 pay rise? A pay rise keeps paying year after year — this comparison shows the long-term difference.
Bonus (one-time net)
€2,640
Paid once this year
Pay rise (annual net)
€2,650
€€221 extra each month
5-year gap
+€10,610
Pay rise ahead by €10,610 over 5 years
Your total income of €€50,000 means your bonus falls into these tax bands:
Your bonus is subject to 4% PRSI on the first €€5,000 (up to the ~€72,000 ceiling).
| Item | Change |
|---|---|
| Gross bonus | €5,000 |
| Cash in pocket (estimate) | €2,640 |
| Net pay reduction (estimate) | €0 |
| PAYE | €2,000 |
| PRSI | €210 |
| USC | €150 |
| Total tax (estimate) | €2,360 |
| Salary sacrifice to pension | €0 |
| Regular employee pension on cash portion | €0 |
| Pension from bonus (total) | €0 |
| Net pay change | €2,640 |
Sign-on bonuses often have clawback clauses. Toggle this on to see the repayment schedule.
Compare your bonus to industry data from Irish salary surveys.
Typical range
€8,000 – €20,000
Median
€12,000
Your bonus
€5,000
Gap to median
-€7,000
Benchmark data is based on published Irish salary surveys and may not reflect current market conditions. Actual bonuses vary by company size, performance, and individual factors.
When do Irish companies pay bonuses? Set a reminder so you’re ready to plan your tax strategy.
Most tech companies and some financial services pay annual bonuses in Q1.
Banking and professional services bonus season.
Some companies use half-year reviews for performance-based bonuses.
December bonuses can trigger USC surcharges. Consider January timing.
Rule-of-thumb: in higher-rate scenarios, a cash bonus can face combined PAYE, USC, and PRSI deductions of around 48%–52%, depending on your year-to-date pay, credits, USC band, and PRSI class.
The tool compares an estimated baseline (salary only) with a combined scenario (salary + bonus). It then reports the differences as "cash in hand", "pension", and "tax" for each scenario. Results are illustrative and are not official Revenue calculations.
A cash bonus is taxed using the same PAYE bands as your regular pay. In many cases, the portion of the bonus above the standard rate cut-off point is taxed at 40% PAYE. Beyond PAYE, bonuses can also attract USC (up to 8%) and PRSI (about 4.2% for many employees).
It estimates remaining relievable pension capacity using age-related limits and the earnings cap (€115,000). The balanced option targets a 50/50 split of gross bonus between pension and cash.
Payroll is cumulative and can be affected by credits, other income, USC exemptions, and scheme-specific handling of deductions. Use this tool as an estimate and confirm with your payroll provider where relevant.
These estimates are based on standard Irish payroll rules for 2026. Your actual tax depends on your full financial circumstances, tax credits, and employer's payroll setup. Consult a qualified tax advisor for personalised advice. Results are illustrative and do not constitute financial advice.
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