Periods of unemployment

Taxation of Jobseeker's Benefit and Jobseeker's Benefit (self-employed)

Jobseeker’s Benefit and Jobseekers Benefit (self-employed) are paid by the Department of Social Protection (DSP) . They are is liable to Income Tax (IT) apart from the:

  • first €13 per week
  • child dependant amount.

Jobseeker’s Benefit and Jobseeker’s Benefit (Self-Employed) are not liable to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

The DSP gives Revenue details of Jobseeker’s Benefit payments. If you receive Jobseeker’s Benefit, and you are a Pay As You Earn (PAYE) taxpayer, we will collect the tax due.

You, or your spouse or civil partner, may receive Jobseeker's Benefit (Self-Employed) and have an ongoing PAYE employment. In this case we will collect the tax due through that employment.

Note

The exchange of information between Revenue and the DSP takes place on a weekly basis. There may be some short delay in the updating of the Jobseeker’s Benefit payment information to your Revenue record

Jobseeker's Benefit

The IT is collected on Jobseeker's Benefit by reducing your annual tax credits and rate band. When you start working again, we will send you a new Tax Credit Certificate showing the revised amounts.

You might claim an IT refund, while you are unemployed. If you do, the taxable amount of your Jobseeker's Benefit will be added to your pay. We will then calculate what refund (if any) you are due.

Note

If you are receiving Jobseeker's Benefit because you are in 'systematic short-time employment', then you do not pay IT on the benefit. 

Jobseeker's Benefit (self-employed)

The Jobseeker’s Benefit (self-employed) payment scheme commenced on the 1 November 2019 after it was announced in Budget 2019. 

The Earned Income Tax Credit may be available to an individual in receipt of Jobseeker’s Benefit (Self-Employed). 

Jobseeker's Allowance

Jobseeker's Allowance differs from Jobseeker's Benefit and is not liable to IT, USC or PRSI.

For more information see Taxation of social welfare payments.

Next: Taxation of short-term jobseekers claims