Earning a second income in Ireland—whether from a side job, freelance work, or rental property—comes with tax implications. Understanding how second incomes are taxed helps you avoid surprises and ensures you're claiming all available reliefs.
Our specialists help people with multiple income sources optimise their tax position. Here's what you need to know about second income tax in Ireland.
📊 Second Income Tax Key Facts
- PAYE second job: Tax credits must be allocated correctly
- Self-employed income: Must file annual return
- Rental income: Separate tax rules apply
- Common issue: Second job taxed at 40% when shouldn't be
Types of Second Income
Second PAYE Job
If your second income is from another PAYE job, your tax credits and rate bands must be split between employers. Without proper allocation, your second job may be taxed entirely at 40%—even if you haven't used your full 20% band at your main job.
Self-Employed/Freelance Income
If you earn self-employed income alongside PAYE employment, you must file a Form 11 tax return annually. You can deduct legitimate business expenses against this income.
Rental Income
Rental income is taxed separately, with various deductions available including mortgage interest, repairs, and pre-letting expenses.
Common Second Income Problems
People with second incomes often overpay tax due to:
- Poor credit allocation: Second job gets no credits
- Emergency tax: When starting the second job
- Rate band issues: All second income taxed at 40%
- Missed reliefs: Not claiming applicable deductions
💡 Real Example
James has a full-time job and does evening bar work. His bar job was taxed at 40% with no credits applied. When we reviewed his tax, we found he'd overpaid €1,890 over three years. Adding rent credit and medical expenses brought his total refund to €4,420.
Reliefs You Can Still Claim
Regardless of how many income sources you have, you may be entitled to:
- Rent tax credit – up to €1,000/year
- Medical expenses – 20% relief
- Flat rate expenses – if either job qualifies
- Working from home – for remote work
The average refund our clients receive is €1,080.
Have a Second Income?
Our experts will review your tax across all income sources and find refunds.
Start Your Free Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Will my main employer know about my second job?
No—credit allocation is between you and Revenue. Your employers don't see information about each other.
Do I need to file a tax return for a second PAYE job?
Not necessarily if it's purely PAYE. However, filing a return ensures correct credit allocation and allows you to claim additional reliefs.
How far back can I claim for overpaid tax?
Four years. If your second income was taxed incorrectly since 2021, we can claim back the overpayment.