Taxation of social welfare payments
- Is my social welfare payment taxed?
- How do I pay tax on my social welfare payment?
- What social welfare payments are taxed?
- What social welfare payments are not taxed?
- Other social welfare schemes
- Who do I contact if I have a question about tax?
Is my social welfare payment taxed?
Some social welfare payments are deemed taxable, and others are not – see tables below.
Even if your social welfare payment is taxable, you may not actually have to pay tax on it. This is because when you get a social welfare payment, you also get an Employee Tax Credit (previously called a PAYE tax credit), in addition to your normal tax credits. Tax credits reduce the amount of tax you pay. So, if a social welfare payment is your only source of income, you may not have to pay tax because the amount you owe in tax is less than your tax credits.
The Employee Tax Credit is given to the person claiming the social welfare payment and not to the adult dependant, even if the Increase for a Qualified Adult is paid directly to the dependant (different rules applied before 2014).
In general, you don’t pay Universal Social Charge (USC) and social insurance (PRSI) on social welfare payments. However, PRSI is payable on income from some employment schemes, such as Community Employment.
How do I pay tax on my social welfare payment?
If you have a social welfare payment and another source of income, you may have to pay tax. In this case, your taxable social welfare payment and your other income are added together, and you are taxed on the total amount.
The Department of Social Protection does not take any tax from your social welfare payment before it is paid to you.
Social welfare payments are taxed by reducing your tax credits and rate band. Your non-social welfare income determines how tax due is paid.
Example: If you are working or getting an occupational pension, and getting a social welfare pension
You are getting a social welfare pension and an occupational pension. Your occupational pension is taxed through the Pay-As-You-Earn (PAYE) system in the same way as a wage or salary. This means that you get your tax credits in the normal way.
To tax your social welfare pension, your annual tax credits are reduced by the tax liability on your social welfare pension. You pay tax on both pensions, but it is collected from the occupational pension. For higher incomes, the standard rate cut-off point will also be reduced. The technical term for this is 'coding in' of credits.
The same arrangement applies if you have income from a job and a social welfare payment. If your social welfare payment was not 'coded in', you would have to pay tax as a self-employed person and in a lump sum by 31 October each year.
See examples of how social welfare payments are taxed.
Example: If you are self-employed and getting a social welfare pension
If your other source of income is not taxed through the PAYE system, (for example, if you are self-employed, have an occupational pension from abroad, or have investment income), then you are classed as a self-employed person and your tax is payable annually by 31 October each year.
Social security pensions from abroad
If you have a social security pension from abroad, it is also generally taxable in Ireland. The tax is payable annually, unless you have a source of income that is subject to PAYE.
Certain foreign pensions that would be exempt from tax if you were resident in the country paying the pension, are also exempt from tax in Ireland.
What social welfare payments are taxed?
Jobseeker’s Benefit
You do not pay tax on the first €13 per week of Jobseeker's Benefit and Jobseeker's Benefit (Self-Employed). If you are a systematic short-time worker, you do not pay tax on Jobseeker's Benefit.
Child Support Payments
You do not pay tax on Child Support Payments (previously called Increases for Qualified Children or IQC) on the following payments:
- Jobseeker's Benefit
- Jobseeker's Benefit (Self-Employed)
- Illness Benefit
- Partial Capacity Benefit
- Occupational Injuries Scheme (Injury Benefit, Disablement Pension and Incapacity Supplement)
Other than the cases above, if your social welfare payment is taxable, you must pay tax on any increase for your adult dependant and child dependants.
Taxable social welfare payments
See the table below for taxable social welfare payments.
| Name of payment | Is it taxed? |
| Adoptive Benefit | Taxable |
| Blind Pension | Taxable |
| Carer's Allowance | Taxable |
| Carer's Benefit | Taxable |
| Death Benefit Pension | Taxable |
| Deserted Wife's Benefit | Taxable |
| Deserted Wife’s Allowance | Taxable |
| Disablement Pension | Taxable (except for child increases) |
| Health and Safety Benefit | Taxable |
| Illness Benefit | Taxable (except for child increases) |
| Invalidity Pension | Taxable |
| Incapacity Supplement | Taxable (except for child increases) |
| Injury Benefit | Taxable (except for child increases) |
| Jobseeker's Benefit (JB) and Jobseeker's Benefit (Self-Employed) | Taxable (first €13 per week excluded) |
| Maternity Benefit | Taxable |
| One-Parent Family Payment | Taxable |
| Partial Capacity Benefit | Taxable (except for child increases) |
| Paternity Benefit | Taxable |
| Parent's Benefit | Taxable |
| Short-Term Enterprise Allowance | Taxable (first €13 per week excluded) |
| State Pension (Contributory) | Taxable |
| State Pension (Non-Contributory) | Taxable |
| Widow’s, Widower’s or Surviving Civil Partner's (Contributory) Pension | Taxable |
| Widow’s, Widower’s or Surviving Civil Partner's (Non-Contributory) Pension | Taxable |
| COVID-19 Pandemic Unemployment Payment (PUP) | Taxable |
What social welfare payments are not taxed?
See the table below for social welfare payments that are not taxed.
| Name of payment | Is it taxed? |
| Back to Work Family Dividend | Not taxed |
| Child Benefit | Not taxed |
| Back to School Clothing and Footwear Allowance | Not taxed |
| Carer's Support Grant | Not taxed |
| Constant Attendance Allowance (payable with Disablement Pension) | Not taxed |
| Disability Allowance | Not taxed |
| Disablement Gratuity (lump sum payment) | Not taxed |
| Domiciliary Care Allowance | Not taxed |
| Farm Assist | Not taxed |
| Working Family Payment (formerly Family Income Supplement) | Not taxed |
| Fuel Allowance | Not taxed |
| Guardian's Payment (Contributory) | Not taxed |
| Guardian's Payment (Non-Contributory) | Not taxed |
| Household Benefits Package | Not taxed |
| Telephone Support Allowance | Not taxed |
| Jobseeker's Allowance | Not taxed |
| Jobseeker's Benefit (paid to systematic short-term workers) | Not taxed |
| Jobseeker's Transitional payment | Not taxed |
| Part-Time Job Incentive | Not taxed |
| Part-Time Job Incentive Self-Employed | Not taxed |
| Pre-Retirement Allowance | Not taxed |
| Supplementary Welfare Allowance | Not taxed |
| Widowed or Surviving Civil Partner Grant | Not taxed |
Revenue provides further information on the taxation of social welfare payments.
Other social welfare schemes
See the table below for the taxation of other social welfare schemes.
| Name of scheme or allowance | Is it taxed? |
| Back to Work Enterprise Allowance | Not taxed |
| Back to Education Allowance | Not taxed |
| Vocational Training Opportunities Scheme (VTOS) | Not taxed |
| Short-Term Enterprise Allowance | Taxed |
| Community Employment (CE) scheme | Taxed |
| Rural Social Scheme (RSS) | Taxed |
| Tús | Taxed |
| Community Services Programme | Taxed |
Who do I contact if I have a question about tax?
If you have a question about your tax liability, you should contact Revenue. You can also visit Revenue's website for more information on the taxation of social welfare payments.
You may also want to contact your local Citizens Information Centre, to speak with an Information Officer.