Ireland vs United Kingdom: tax wedge
For a single average worker, United Kingdom has the lighter tax wedge of the two: 31.3% of total labour cost versus 35.1% in Ireland — about 3.8% apart. Ireland's wedge splits into income tax 24%, employee social security 4% and employer social security 11.1%; United Kingdom's into 14.8% / 8.9% / 11.2%. United Kingdom leaves the worker more take-home (keeps 76.3% of gross). These are modelled OECD averages, not personal tax advice.
Source: OECD Taxing Wages. Data as of June 2026 (OECD Taxing Wages, 2023 data year).
Ireland vs United Kingdom side by side
| Measure (single worker) | Ireland | United Kingdom |
|---|---|---|
| Total tax wedge | 35.1% | 31.3% |
| Personal income tax (of gross) | 24% | 14.8% |
| Employee social security (of gross) | 4% | 8.9% |
| Employer social security (of labour cost) | 11.1% | 11.2% |
| Net personal average tax rate | 28% | 23.6% |
| Net take-home (USD PPP) | $55,475 | $52,790 |
| Gross labour cost (USD PPP) | $85,515 | $76,883 |
| Tax wedge — family (1 earner, 2 kids) | 21.9% | 27% |
| Region | Europe | Europe |
Source: OECD Taxing Wages (CC BY 4.0). Single average worker at 100% of the average wage; monetary figures USD PPP.
Where each labour-cost dollar goes
- Net take-home pay: 63.8%
- Income tax: 21.6%
- Employee social security: 3.6%
- Employer social security: 11.1%
- Net take-home pay: 67.5%
- Income tax: 13.3%
- Employee social security: 8%
- Employer social security: 11.2%
Verdict
On the OECD tax wedge for a single average worker, United Kingdom taxes labour more lightly than Ireland — a 3.8% smaller wedge as a share of total labour cost. But the wedge is a blunt comparison: it models one standard worker, ignores your actual income, family and deductions, and says nothing about what the taxes fund. The composition matters too — a country can have a similar wedge built from very different mixes of income tax versus employer contributions. Read the full pages for Ireland and United Kingdom, and try the estimator on a real salary.
Frequently asked questions
Does Ireland or United Kingdom have the lower tax wedge?
United Kingdom has the lower tax wedge of the two: 31.3% of labour cost versus 35.1% for Ireland — a gap of about 3.8% of total labour cost for a single average worker. Both are measured against the OECD average of 34.9%. These are modelled averages, not personal tax.
Which keeps more take-home pay, Ireland or United Kingdom?
United Kingdom leaves the worker with more of their gross wage: a net personal average tax rate of 23.6% means they keep about 76.3% of gross, versus 72% in the other country. Note this "net rate" excludes employer social security, which still adds to the total wedge.
Why is the employer social-security difference between Ireland and United Kingdom important?
Employer social security is part of the tax wedge but never appears on the payslip: it raises the cost of employing someone without raising gross pay. Ireland charges 11.1% of labour cost in employer contributions versus 11.2% in United Kingdom. A high employer wedge means a worker on the same net pay costs the employer much more.
Should I compare Ireland and United Kingdom on the tax wedge alone?
No. The tax wedge is a model of an average single worker at 100% of the average wage — it ignores your income level, brackets, family status, deductions and what those taxes buy (healthcare, pensions, schooling). Use it as a directional signal, read each country's full page, and consult a tax adviser before relocating. Not tax advice.
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Last updated: 2026-06-29