If you've been made redundant, your redundancy payment may be partially or fully tax-free. You may also be entitled to a refund on tax you paid while working, due to unused tax credits.
Our specialists help redundant workers understand their tax position and claim all refunds they're entitled to. Here's what you need to know.
📊 Redundancy Tax Facts
- Basic exemption: €10,160 + €765 per year of service
- Increased exemption: Up to €10,000 extra available
- SCSB: Additional relief for long-term employees
- Unused credits: May get refund on income tax
Tax-Free Redundancy Amounts
Your redundancy payment has tax-free elements:
Basic Exemption
€10,160 + €765 for each complete year of service. For example, with 10 years of service:
€10,160 + (10 × €765) = €17,810 tax-free
Increased Exemption
An additional €10,000 may be available if you haven't used this relief in the last 10 years and you're not entitled to a pension from your employer.
Standard Capital Superannuation Benefit (SCSB)
For employees with pension rights, an alternative calculation may give a higher tax-free amount. Our specialists can determine which is better for you.
💡 Real Example
Claire received a €35,000 redundancy payment after 12 years. Her basic exemption was €19,340 (€10,160 + 12 × €765). With the increased exemption, she had €29,340 tax-free. Plus, her unused tax credits from the months she didn't work gave her a further €1,890 refund.
Unused Tax Credits
If you were made redundant mid-year, you may have unused tax credits. Your credits are annual—if you don't use them all, you've overpaid tax.
This refund is separate from your redundancy payment calculation.
Other Reliefs You May Be Missing
When we review your tax, we also check for:
- Rent tax credit – up to €1,000/year
- Medical expenses – 20% relief
- Flat rate expenses – from when you were working
- Emergency tax – from previous job changes
The average refund our clients receive is €1,080.
Been Made Redundant?
Our experts will review your redundancy tax and find all other reliefs.
Start Your Free Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Is statutory redundancy taxable?
Statutory redundancy (€600/week × years of service × 2 weeks) is completely tax-free. Ex-gratia payments above this use the exemption calculations.
Will my employer calculate this?
Your employer should apply the exemptions, but they don't check for unused credits or other reliefs. Our review ensures nothing is missed.
Does Jobseeker's Benefit affect this?
Jobseeker's Benefit is taxable, but if your overall income is low enough, you may still be owed a refund. See our guide on social welfare taxation.