Income Taxes in Ireland

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If you earn €30,000 your income after tax will be €25,427. If you earn €60,000 your income after tax will be €41,937. In this article we will discuss how Irish taxes work.

Standard Bands (20% & 40%)
There are two standard bands 20% & 40%. You pay 20% tax on your first €35,300 and anything above this is tax at 40%.

PRSI & USC
PRSI is charged on income above €18,305 at 4%. Unlike the standard bands its the full income which is charge at 4% not the income above €18,305.

USC stands for universal social charge and is a bit more complex as it’s based on bands. On your first €12,012 you pay 0.5%. Next €7,862 , 2%. Next €50,170, 4.5%. Balance 8%. You only pay USC if your total income exceeds €13,000.

Credits
There are a number of credits which can be used to offset your taxes. The two most common are Single person €1,650, PAYE worker €1,650.

Example

Back to our example of a person earning €30,000.

Description
Income30,000
Standard @ 20%(6,000)
Prise @ 4%(1,200)
USC (0.5% – 60, 2% 157, Balance 456)(673)
Credits3,300
Net Income25,427

 

Ireland v other countries