Periods of unemployment

Taxation of Jobseeker's Benefit

Jobseeker’s Benefit, paid by the Department of Employment Affairs and Social Protection (DEASP), is liable to Income Tax apart from the:

  • first €13 per week
  • child dependant amount.

Also if you are receiving it because you are in 'systematic short time employment' (see the DEASP website for more information), then you do not pay Income Tax on it.

Jobseeker’s Benefit is not liable to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

Use the Jobs and Pensions service in myAccount to tell us if you are receiving Jobseeker's Benefit or any other DEASP payment.

Income Tax 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.

If you claim an income tax refund, while you are unemployed, the taxable amount of your Jobseeker's Benefit will be added to your pay, and we will then calculate what refund (if any) you are due.

Jobseeker's Allowance differs from Jobseeker's Benefit and is not liable to Income Tax, USC or PRSI. See Taxation of social welfare payments for more information on taxable social welfare payments.