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Calculating your Income Tax

What is the difference between gross and taxable pay?

Gross pay

Gross pay is the employee’s pay of any kind, including:

  • notional pay
  • share based remuneration
  • and
  • the employee's pay before any pension contributions or salary sacrifice deductions are made. 

Taxable pay

Taxable pay is your gross pay, less any contributions you make to a:

  • Revenue approved pension scheme
  • Revenue approved Permanent Health Benefit (Income Continuance) scheme
  • Salary Sacrifice Arrangement
  • Personal Retirement Savings Account (PRSA)
  • and 
  • Retirement Annuity Contract (RAC).

These amounts are deducted from your gross pay before your employer calculates your tax.

There is more information on gross pay and taxable pay in Chapter 3 of Employers Guide to PAYE.

Next: What is a tax rate band?

Published: 17 January 2025 Print this page

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