This article explains the changes for the 2026 tax year.
Rate changes 2026
As part of the year-end process, review and configure rate changes for the new tax year.
Preloaded rates
We preload the following rate changes as part of the year end software update:
Pay As You Earn (PAYE)
Pay Related Social Insurance (PRSI)
Universal Social Charge (USC)
Statutory Sick Pay (SSP) Entitlement Days
Additional Superannuation Contribution (ASC)
To review these rates, check preloaded 2026 rates.
Customer configurable rates
You need to configure the following rates manually:
OAP rates
Social Welfare Rates
National Minimum Wage
For more details on these rate changes, refer to the year end checklist article and Government website.
Software changes 2026
During your year end process, review the following software changes.
SSP entitlement days
The current entitlement for paid statutory sick leave (SSP) in Ireland remains at five days per calendar year.
Although the sick leave act 2022 initially planned for a phased increase to seven days from 1 January 2025 and ten days in 2026, these expansions have been postponed. A ministerial order to implement the increases for 2025 was not issued; therefore, the entitlement remains at five days in 2025 and will continue at five days in 2026, pending further governmental review.
Small benefit exemption
The small benefit exemption remains at €1,500 per annum per employee. Employers may still provide up to five benefits, which must be non-cash and must not exceed a total value of €1,500 in a tax year.
Extension of lower rates of Benefit in Kind
The following changes will apply to BIK on employer-provided vehicles:
From 1 January 2026, a new vehicle category (A1) for zero-emission cars will be introduced. BIK for category A1 cars will be calculated at between 6% and 15% of the car's original market value (OMV), based on business mileage.
The temporary reduction to the OMV, which decreases the amount of BIK payable for all cars in categories A1, A, B, C, and D (excluding E), as well as vans, will be extended to 2026, 2027, and 2028 as follows:
€10,000 for 2026
€5,000 for 2027
€2,500 for 2028
The lower mileage limit in the highest mileage band for employer-provided cars will remain permanently at 48,001.
Auto enrolment
Auto enrolment in Ireland will begin in January 2026. For more information, consult the Auto Enrolment user guides.
Single Pension Scheme (SPS) reporting via payroll submissions
The Department of Public Expenditure and Reform is collaborating with Revenue to introduce a requirement for reporting specific Single Pension Scheme (SPS) information in every payroll run via the Payroll Submission Return (PSR) as part of PAYE Modernisation.
The five new data items to be reported are:
Gross Pensionable Remuneration(GPR).
Net Pensionable Remuneration(NPR).
Full Time Equivalent (FTE) / Work Pattern.
Lump sum referable amounts accrued.
Pension referable amounts Accrued.
To achieve this, clarify and standardize how Single Pension Scheme calculations are managed across all relevant employers. The Department has conducted several workshops in recent months to address this. These new fields will be reportable from 2027 and mandatory in 2028.