A tax band is a fixed amount of taxable income that is taxed at the standard rate Any taxable pay exceeding the band amount is taxed at the higher rate Personal StatusBands of Taxable Income in a Sample Tax Year Single/Widowed without dependant children €32,800 @20% Balance @ 41% Single/Widowed with dependant children €36,800 @20% Balance @ 41% Married Couple- one spouse income €41,800 @20% Balance at 41% Married couple – both spouses with income €41,800 @20% Balance at 41%
Single without children Earns €38,000 €32,800 @ 20% = €6,560 €5200 @ 41% = €2,132 Total Gross Tax = €8,692
Single without children Earns €44,000 €32,800 @ 20% = € €11,200 @ 41% = € Total Gross Tax = €
The Standard Rate Cut-off Point is the same as the Band but the amount may be adjusted for any non-PAYE income or allowable expenses. This will be shown in the Tax Credit Certificate The Cut-off varies from person to person.
What is Standard Rate Cut-off Point? A standard rate cut-off point is the amount of your personal standard rate tax band 20%. For each pay period, weekly, fortnightly or monthly, you pay tax at the standard rate of tax up to your standard rate cut-off point. Any income over your standard rate cut-off point is taxed at the higher rate 41%. Your own personal amounts are printed on your most up-to-date Tax Credit Certificate – notified by revenue to your employer
For each pay period, weekly, fortnightly or monthly, you pay tax at the standard rate of tax up to your standard rate cut-off point. Any income over your standard rate cut-off point is taxed at the higher rate 41%. Example: Ann has a weekly standard rate cut-off point of €680.77 and she earns €750 per week. This means that the first €680.77 of Ann's wages is taxed at 20% and the balance €69.23 (€750 - €680.77) is taxed at the higher rate 41%.
All employees are automatically entitled to the following tax credits: Personal PAYE Flat Rate Expenses – related to the nature of employment, usually agreed between union and Revenue and are allowed at the standard rate of tax ◦ Chef €97 Flat Rate Expense Credit @20 % = 19.40 ◦ Carpenter Flat Rate Expense Credit @20% = 44.00 House Insurance is not allowable as a tax credit
Eoin: Single Single Person1650.00 PAYE1650.00 Total Tax Credit3300 annual Monthly (/12)275.00 Weekly(/52) 63.46
Anne: widow with 2 children (6&9) Widowed person1650 One Parent Family1650 Widowed Parent3150 PAYE1650 Total Tax CreditAnnual Monthly Weekly
Brian & Anne: married with 1 child (7) special needs. Elderly mother lives with them. Both work outside the home. Married person3300 PAYE3300 Incapacitated child3300 Dependant Relative 70 Total Tax CreditAnnual Monthly Weekly
Calculate Tax @ Standard Rate 20% Calculate Tax @ top rate 41% Add to give Gross Tax Subtract Credits (as per Tax Credit Cert) = Tax due