Taxation of DSP payments

Overview

In general, payments from the Department of Social Protection (DSP) are taxable sources of income unless they are specifically exempt from tax. In this section, the tax-exempt and taxable payments are listed.  In addition, how tax is calculated on taxable payments is explained.

Revenue will receive a notification from the DSP when your claim is closed. Please note that this can take up to four weeks and there is no need to contact us about it. Once the closure notification has been received, we will then:

  • restore your remaining tax credits and rate band
  • and
  • send you a new Tax Credit Certificate (TCC).

A new Revenue Payroll Notification (RPN) will also be made available to your employer.

Taxable payments are subject to Income Tax, but not Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

Note

If you receive a payment from the DSP which is not directly reported by them to Revenue, you must declare this income to us.

Next: Taxable DSP payments you need to declare

Published: 14 September 2026 Print this page

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