Income Tax Rates Ireland

A brief summary of the Income Tax Rates in Ireland is given below – the figures shown are valid from from January 2016.

Note: As well as income tax – other deductions are taken from wages in Ireland. There is the Universal Social Charge. See more about the Universal Social Charge Here.

Another deduction from gross pay is PRSI (Pay Related Social Insurance) .
PRSI rates in 2016 :
For private sector PAYE workers – the majority are Class A PRSI – deductions are at 4%.
PRSI is charged on all income when you earn more than €352 a week . Prior to January 2013 – no PRSI was charged on the first €127 a week.

Personal Tax Credits in Ireland from January 2016

Single Taxpayers
Personal tax credits of €1,650
PAYE tax credit of €1650
Income Tax Rate : 20% on the first €33,800 ; 40% on the balance

Married Taxpayers (two incomes)
Personal tax credits of €3,300
PAYE tax credit of €1650
Income Tax Rate: 20% on the first €65,600 ; 40% on the balance

Married Taxpayers (single income)
Personal tax credits of €3,300
PAYE tax credit of €1650
Income Tax Rate : 20% on the first €42,800 and 40% on the balance

Example : Calculation of Take Home Pay : 2016

A single person , employee earning €35000.
Gross Income Tax = €7240 (20% on the first €31800 and 40% on the remainder ).
Less Tax credits of €3300 – so tax due = €3940
Universal Social Charge – €1218
PRSI = €1400
Net Pay = €28,442

More examples of Take Home Pay in Ireland here

Tip A tax credit for homemakers is available for married couples, where one spouse works in the home caring for a dependent person(s) and the home carer’s income in their own right does not exceed €5,080.

Tip: Refunds of Tax may be claimed in respect of qualifying medical expenses incurred by a taxpayer and/ or his /her  dependents .