Irish PRSI Rises Again in October 2026: What the Blended Rate Means for Sole Traders

Irish self-employed PRSI is rising again. From 1 October 2026, Class S contributions increase from 4.2% to 4.35% on reckonable income. Because the rate changes mid-year, Revenue does not expect sole traders to split every invoice by month — instead, self-assessed filers use a blended annual rate of 4.2375% when calculating PRSI on Form 11 for 2026 income.

That small percentage shift adds up. A sole trader with €80,000 profit pays roughly €120 more in PRSI than if the full year stayed at 4.2%. Combined with unchanged income tax bands in Budget 2026, PRSI is now the lever most likely to nudge up your 2026 preliminary tax estimate.

Class S PRSI applies to self-employed people, including many proprietary company directors who take income outside PAYE. From 1 January to 30 September 2026, the rate is 4.2%. From 1 October 2026, it rises to 4.35%. Employers face a parallel increase on Class A — employer PRSI moves from 11.25% to 11.4% on the same date.

Revenue's blended rate of 4.2375% reflects nine months at 4.2% and three months at 4.35%. Use that figure when projecting full-year PRSI on 2026 trading income in your preliminary tax calculation due with Form 11 for 2025 (filed by 31 October 2026, or 18 November if you pay and file through ROS).

The minimum annual Class S contribution remains €650 even if 4.2375% of your reckonable income is lower. If total income from all sources is below €5,000, you are exempt from PRSI liability.

If you employ staff — or pay yourself a director's salary through PAYE — payroll software must apply the correct employee and employer PRSI rates from the October pay run onward. PAYE Modernisation submissions report employer PRSI separately; under-deducting after a rate change is a common audit trigger.

Umbrella companies and small employers on FinnAccountings Business plan get automatic rate updates in PAYE Modernisation payroll, with employer PRSI, USC, and pension handling reflected on each submission and payslip.

Preliminary tax for 2026 is due when you file Form 11 for 2025. Revenue expects either 90% of your estimated 2026 liability or 100% of your 2025 liability — whichever is lower. Underestimating PRSI after the October increase can mean interest on underpaid preliminary tax.

FinnAccountings Professional plan runs live Form 11 estimates including USC, PRSI at current rates, and income tax bands. Adjust your profit forecast now so October's PRSI rise does not surprise you at Pay & File.

Review your 2026 profit forecast and recalculate PRSI using 4.2375%, not 4.2%. Confirm payroll systems will switch employee and employer PRSI on 1 October. If you also have PAYE income, remember PRSI paid at source reduces what you owe through self-assessment.

Start a free trial to see your updated PRSI estimate alongside income tax and USC — before preliminary tax for 2026 is locked in at Pay & File.