Ireland vs United Kingdom: tax rates
On headline statutory rates, Ireland is the lighter-tax country of the two. Ireland's top personal income tax is 40% versus 45% in United Kingdom; corporate tax is 12.5% versus 25%; and standard VAT/GST is 23% versus 20%. These are top statutory rates, not the effective tax you'd actually pay — residency, brackets, deductions and social security all change the real number. This is not tax advice.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Ireland vs United Kingdom side by side
| Tax | Ireland | United Kingdom |
|---|---|---|
| Top personal income tax | 40% | 45% |
| Corporate income tax | 12.5% | 25% |
| Standard VAT/GST | 23% | 20% |
| Capital gains (individuals) | 33% | 18% basic / 24% higher rate |
| Employee social security | Employee PRSI ~4.1% | Employee National Insurance up to 8% |
| Region | Europe | Europe |
Source: PwC Worldwide Tax Summaries, cross-checked with OECD and Tax Foundation data. Statutory headline rates, not effective rates.
Verdict
Judged purely on headline rates, Ireland taxes less than United Kingdom across income, corporate and consumption combined. But that is a blunt comparison: it ignores the income bands those top rates apply to, the deductions and credits each system offers, social-security contributions, and — crucially — your own residency and where your income arises. Read each country's full page (Ireland and United Kingdom) and run the numbers in the calculator before drawing conclusions.
Frequently asked questions
Is Ireland or United Kingdom a lower-tax country?
On headline statutory rates, Ireland has the lighter overall tax load of the two. Its top personal income tax is 40%, corporate tax 12.5% and VAT/GST 23%, versus 45% / 25% / 20% for United Kingdom. This compares top statutory rates only, not effective tax or your personal situation.
Which has lower income tax, Ireland or United Kingdom?
Ireland has the lower top personal income tax rate: 40% versus 45%. Remember these are top marginal rates — the rate an average earner pays is lower, and brackets, allowances and social security differ between the two.
Does Ireland or United Kingdom tax capital gains more?
Ireland treats individual capital gains as: 33%. United Kingdom treats them as: 18% basic / 24% higher rate. Holding periods, asset type and residency change the outcome in both — check each country's full page and confirm with a tax adviser.
Should I move from Ireland to United Kingdom for tax reasons?
Headline rates are only a starting point. Real liability turns on tax residency, where income arises, exit taxes, treaties and (for US citizens) worldwide taxation. This comparison is general information, not tax advice — speak to a cross-border tax professional before relocating.
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Last updated: 2026-06-20