Congratulations on landing your first job after graduation! As you start earning, understanding how tax works in Ireland will help you avoid overpaying. Many graduates end up on emergency tax or have tax credits applied incorrectly, resulting in refunds they never claim.
MyTaxRebate.ie helps graduates navigate their first tax year and claim back any overpaid tax. Whether you're currently on emergency tax or want to check previous years, we can help.
Tax Credits for New Graduates
As a PAYE employee, you're entitled to tax credits that reduce your tax bill:
| Tax Credit | 2025 Value |
|---|---|
| Personal Tax Credit | €2,000 |
| Employee Tax Credit (PAYE) | €2,000 |
| Rent Tax Credit (if renting) | Up to €1,000 |
What this means: With €4,000 in basic tax credits, you can earn approximately €20,000 before paying income tax (though USC and PRSI may still apply at lower thresholds).
Emergency Tax - The Graduate Trap
The most common issue for graduates is emergency tax. This happens when you start work before your tax details are registered with Revenue. Signs you're on emergency tax:
- •Your payslip shows very high tax deductions
- •Tax codes like "Week 1" or "Month 1"
- •Up to 40% being deducted from your pay
If you've been on emergency tax, you can claim back the overpayment. MyTaxRebate.ie can help you resolve this and recover your money.
What About Part-Time Work During College?
If you worked during your studies, you may be owed refunds from those years too. Common situations include:
- ✓Summer jobs where emergency tax was applied
- ✓Part-time work with unused tax credits
- ✓Multiple jobs without correctly split credits
Understanding Your First Payslip
Key things to check on your payslip:
- •Income Tax: Should be around 20% of income above tax credits
- •USC: Universal Social Charge at various rates
- •PRSI: Pay Related Social Insurance (4% for most employees)
Frequently Asked Questions
How do I register my first job with Revenue?
You should register your new employment through Revenue's myAccount. This ensures your tax credits are applied correctly. If you've already started and are on emergency tax, MyTaxRebate.ie can help resolve this and claim back overpaid tax.
When should I check my tax?
It's good practice to check after your first payday to ensure you're not on emergency tax. Then review again at year end to claim any overpaid tax or unused credits.
Do I need to file a tax return?
As a PAYE employee, you generally don't need to file a tax return. However, claiming refunds or additional reliefs may require a tax review. MyTaxRebate.ie handles this for you.
Graduate Tax Review
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