If you run your own limited company, company director tax in Ireland is not only a corporation tax question. You pay income tax, USC and PRSI on whatever the company pays you, and a company car or a cheap loan is taxed as extra pay on top. This guide gives the 2026 figures, a worked salary example, the way benefit in kind is calculated, how to tell which PRSI class applies and what changes for directors in 2027.

Key takeaways for company directors

• A director paid through payroll is taxed like an employee: 20% income tax up to €44,000 for a single person in 2026, 40% above that, less credits of €2,000 each for the personal and employee credits.
• USC for 2026 is 0.5% up to €12,012, 2% to €28,700, 3% to €70,044 and 8% above, and employee PRSI is 4.35% from 1 October 2026.
• Benefit in kind is taxed as extra pay: a company car with an original market value of €40,000 in the 30% band produces a €9,000 cash equivalent in 2026.
• An interest-free company loan that is not for your home is taxed as a benefit at 13.5% of the amount; a qualifying home loan is charged at 4%.
• For 2027 the single standard rate band rises to €46,500 and the 2% USC band runs up to €30,300.

How is a company director taxed in Ireland?

A director who takes a salary through payroll is taxed like any employee: 20% income tax up to €44,000 for a single person in 2026 and 40% above it, plus USC and PRSI, less tax credits. Dividends and other income outside payroll are taxed separately, usually through an annual return.

The company runs the payroll, reports your pay to Revenue each time you are paid and deducts PAYE at source. A director who also has rental income or dividends can end up with two systems running side by side: PAYE on the salary, and a yearly income tax return for everything else.

Revenue publishes the full schedule of USC rates for 2026, and the company must apply them on every pay day.

What does a €60,000 director salary cost in tax?

Take a single director paid €60,000 for a full year at the rates in force from 1 October 2026.

The actual 2026 figure is a little lower because PRSI was 4.2% until 30 September. The company also pays employer PRSI on top, which is a cost to the company and not a deduction from you.

Which PRSI class applies to a company director?

A director paid a salary through payroll under a contract of service is normally insured at Class A, like an employee. Gov.ie lists certain company directors in Class S, the self-employed class, so the Department of Social Protection decides each case from the facts.

The class matters because it changes how the contribution is collected: Class A comes off your pay at 4.35% from 1 October 2026, while Class S is paid through your annual return. If you are unsure which applies, settle it before you set up payroll rather than after your first return.

What is benefit in kind for a company director?

Benefit in kind (BIK) is a non-cash benefit your company gives you, such as a company car or a low-interest loan, taxed as if it were extra pay. The company must deduct income tax, USC and PRSI on its value through payroll, and the charge falls on you, not on the company.

How is BIK on a company car calculated?

Revenue starts with the car’s original market value (OMV), takes off €10,000 for most cars up to 2026, then multiplies by a percentage that falls as business mileage rises. For a car in emissions category C doing up to 26,000 business kilometres, the percentage is 30%.

The reduction tapers to €5,000 in 2027 and €2,500 in 2028, so the same company car costs more in BIK each year. Electric cars get an extra reduction, which Revenue sets out in its company car guidance. Keep a mileage log: with no records, Revenue says it may assume 8,000 private kilometres.

How is BIK on a director’s loan calculated?

A loan from your company at less than Revenue’s specified rate creates a BIK charge on the difference. The specified rate is 4% for a qualifying home loan and 13.5% for any other loan. An interest-free €20,000 director’s loan not used for your home creates a taxable benefit of €2,700 a year.

That sits in payroll as notional pay, so it attracts income tax, USC and PRSI. Revenue also taxes the amount of any loan the company writes off in the year it happens.

What changes for company directors in 2027?

Budget 2027 raises the single standard rate band to €46,500, lifts the personal and employee credits to €2,125 each and extends the 2% USC band to €30,300. Employee PRSI rises to 4.50% and employer PRSI to 11.55% from 1 October 2027.

These are the figures announced in Budget 2027 as of October 2026. The Finance Bill sets the legal detail, so check the final wording before you change payroll in January.

Which director set-ups need a closer look in Dublin and Kerry?

A Dublin director running a consultancy through a one-person company may take a modest salary and leave the rest in the company. The PAYE side is simple, but any loan back from the company is where BIK appears. A tax advisor in Dublin will look at the loan account first.

A director of a family farm or tourism company in Kerry who drives a company jeep or van has the opposite problem: the vehicle is easy to spot, but private use is not recorded. Fuchsia Bell is a firm of chartered accountants in Castlemaine, Co. Kerry, run by Gero O’Connor, and an accountant in Kerry can sort out the paperwork online. These rules are national, so where the company sits does not change what Revenue expects.

Can a director handle this alone, or is an accountant worth it?

If you take a salary only, with no car, no loan and no other income, payroll software and a calm afternoon are enough. Help starts to pay for itself when a company car, a loan to or from the company, or income outside payroll enters the picture.

Setting up payroll properly for a director, including how BIK is reported each pay day, is easier to do once than to correct after year end. For a deeper look at the company side, our page on tax for company directors covers loans, dividends and expenses.

Frequently Asked Questions

Do company directors pay PAYE in Ireland?

Yes. A director paid a salary through the company’s payroll pays PAYE like any employee: income tax at 20% and 40%, USC and PRSI, less tax credits. The company deducts it and reports it to Revenue each pay day. Income that does not go through payroll, such as dividends, is reported separately on an annual return.

What PRSI do company directors pay in 2026?

A director on payroll at Class A pays 4.35% employee PRSI from 1 October 2026, up from 4.2%, and the company pays 11.4% employer PRSI on weekly pay above €552. Some directors are in Class S instead, which the Department of Social Protection decides from the facts.

Is a company car a benefit in kind for a director?

Yes, if the company makes the car available for your private use. The taxable benefit is the car’s original market value, less any reduction, multiplied by a percentage set by emissions category and business mileage. For a category C car under 26,000 business kilometres in 2026, the percentage is 30%.

Does a company director need to file a tax return?

Yes, if you have income that is not taxed through payroll, such as rental income or dividends, you file an income tax return. For 2025, the extended ROS deadline is Wednesday 18 November 2026 if you file and pay through ROS. Otherwise the date was 31 October 2026.

If your company has started giving you a car or a loan, or you are about to move from salary to a mix of salary and dividends, that is the point to speak to a chartered accountant. A wrong BIK figure is easy to make and a payroll correction after year end costs more time than getting it right in January.