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Navigating the tax system is a critical aspect of working as a GP in Ireland. Whether you’re a salaried doctor or a self-employed locum, understanding the basics of taxes for doctors in Ireland can significantly impact your financial planning and overall income. For those considering relocating to Ireland, the nuances of the Irish tax system may differ from what you’re used to. Here, we provide an overview of how taxes work for GPs, highlight the importance of tax planning, and explain how professional guidance can make a substantial difference.

Taxes for Salaried GPs in Ireland
Salaried GPs in Ireland are typically employed by GP clinics, which are mostly private and often run by the GPs themselves, either as sole practitioners or as part of a group (partnership) of GPs. Larger clinics usually have practice managers who handle HR matters such as salaries and payslips.
As a salaried GP, you will most likely fall under the PAYE (Pay As You Earn) system. This system automatically deducts the three main taxes: income tax, PRSI (Pay Related Social Insurance), and USC (Universal Social Charge) from your paycheck. It is the most common method of payment and taxation for doctors and other professions in Ireland. For the 2025 tax year:
- Income Tax:
- 20% on the first €44,000 of income (single person).
- 40% on income exceeding this threshold.
- PRSI: 4% of gross earnings.
- USC: Progressive rates:
- 0.5% on the first €12,000.
- 2% on income between €12,000 and €27,382.
- 3% on income between €27,382 and €70,044.
- 8% on income above €70,044.
- Tax Credits:
- Personal Tax Credit: €2,000.
- Employee Tax Credit: €2,000.
- Additional credits such as Home Carer Tax Credit (€1,950) and Single Person Child Carer Credit (€1,900) may apply depending on eligibility.
What Are Tax Credits?
Tax credits reduce the amount of income tax you are liable to pay. For example, if your total income tax liability is €10,000, applying €4,000 in tax credits (e.g., Personal and Employee Tax Credits) would reduce the amount you owe to €6,000. These credits do not apply to PRSI or USC but can significantly lower your overall tax burden.
Example of taxes for a Doctor earning 100.000€ annually
For example, if a salaried GP earns €100,000 annually, their tax obligations would be calculated as follows:
Category | Income Range | Rate | Amount (€) |
Income Tax (20%) | First €44,000 | 20% | €8,800 |
Income Tax (40%) | Next €56,000 | 40% | €22,400 |
PRSI (4%) | Total €100,000 | 4% | €4,000 |
USC (0.5%) | First €12,000 | 0.5% | €60 |
USC (2%) | €12,000 to €27,382 | 2% | €306.44 |
USC (3%) | €27,382 to €70,044 | 3% | €1,283.86 |
USC (8%) | Over €70,044 | 8% | €2,399.52 |
Subtotal Tax Payable: €39,249.82
Applying tax credits:
Tax Credit | Amount (€) |
Personal Tax Credit | €2,000 |
Employee Tax Credit | €2,000 |
Total Tax Payable after Credits: €35,249.82
Additional Possible Tax Credits:
- Medical Expenses Tax Relief: Relief on qualifying health expenses.
- Tuition Fees Credit: Relief for tuition fees paid for approved education programs.
- Flat Rate Expenses: Applicable to certain professions, including GPs, and the registration fee for the Medical Council, up to €695 annually, may also qualify as a deductible expense.
Note: This calculation is an approximate estimate for single individuals and does not account for specific circumstances like marital status, dependents, or other applicable credits. Always consult a tax professional for personalized advice tailored to your unique situation. For precise calculations based on individual circumstances, including potential deductions and credits, professional guidance is essential to optimize your tax position.
Locum GPs: Sole Traders vs. Incorporated
Locum GPs have more flexibility in how they structure their work and income, which can significantly impact their tax obligations.
They can work as salaried doctors, as explained before, with clinics registering them as employees and deducting taxes for every engagement they undertake. This is a common arrangement that provides stability and simplicity for many GPs.
Alternatively, as a locum GP, you have the option to register as a sole trader or incorporate your work using a Personal Limited Company, billing your services directly to clinics. These options are popular among locum doctors who value greater autonomy over their finances. While it offers potential benefits such as tax savings and increased control over income, it also comes with additional responsibilities, including more paperwork and a higher risk of compliance issues.
VAT Treatment for Locum GPs
Locum GPs operating as sole traders or through limited companies may also need to consider VAT (Value Added Tax) obligations. In Ireland, medical services are generally exempt from VAT. However, there are nuances in the VAT treatment of locum doctors, particularly if you are registered for VAT. For example, if your turnover exceeds the VAT registration threshold (currently €42,500 for services), you may be required to charge VAT on your invoices to clinics.
This is a complex and sensitive area of tax law. For detailed information, consult the Revenue Guidance on VAT for Medical Services here.
It is always best to seek professional advice from a qualified tax advisor or accountant to ensure compliance with Irish VAT regulations and address your specific circumstances.
Comparison of a Sole Trader LOCUM GP and a Incorporated LOCUM GP:
Sole Trader LOCUM GP
As a sole trader, you invoice clinics directly for your services. Your earnings are subject to self-assessment taxation, meaning you are responsible for filing your tax return and paying taxes.
- Advantages:
- Simpler to set up than a limited company.
- Eligible for various business-related deductions (e.g., CPD courses, travel expenses, professional indemnity insurance, and other essential costs).
- Considerations:
- Income is taxed similarly to salaried employees but allows for more deduction of expenses.
Incorporated LOCUM GP
Incorporating as a limited company offers additional tax planning opportunities. You become an employee of your own company and can pay yourself a salary and dividends.
- Advantages:
- Lower corporate tax rate of 12.5% on profits.
- Potential to retain profits within the company for future use.
- Greater flexibility in managing income and expenses.
- Considerations:
- Requires more administration and costs.
Importance of Tax Planning
Effective tax planning is essential for GPs in Ireland, especially for locum doctors. The differences between being salaried, a sole trader, or incorporated can result in significant variations in take-home pay. For example:
- A locum GP earning €100,000 as a sole trader might pay a higher effective tax rate than one who has incorporated their practice and retained profits within the company.
- Deductions for business expenses can also lower taxable income significantly for both sole traders and incorporated LOCUM GPs.
Filing Taxes in Ireland
For salaried GPs, the PAYE system automates tax payments. However, if you choose to work as a sole trader or through a limited company, you must adhere to the respective deadlines outlined above. Keeping accurate financial records and using accounting software can simplify this process. For official guidance on deadlines and tax filing procedures, consult the Revenue website.
Professional Guidance
Navigating the complexities of the Irish tax system can be daunting. Engaging a tax advisor or accountant can help ensure compliance while maximizing your income. From CSE Connect, we can provide comprehensive guidance tailored to your unique situation and connect you with trusted professionals to ensure a seamless experience navigating the Irish tax system and maximizing your income potential.
Important disclaimer
The information provided in this blog is for general informational purposes only and does not constitute professional tax or legal advice. Tax laws and obligations, including VAT treatment, can vary based on individual circumstances. Always consult a qualified tax professional or accountant to ensure compliance and to receive personalized advice.
Final Thoughts
Understanding Ireland’s tax system and planning effectively can make a substantial difference in your financial well-being. Whether you’re a salaried GP or exploring locum opportunities, being informed and seeking professional advice are key steps to optimizing your income.
For more information on working as a GP in Ireland or to connect with expert advisors, visit CSE Connect, and Contact Us, we might be able to point you in the right direction.
For official information on Irish taxation, visit Citizens Information or Revenue.