Income Tax Rates Ireland 2021
Tax on income that you earn from employment is deducted from your wages by your employer on behalf of the Irish Government. This is known as Pay As You Earn (PAYE). The amount of tax that you have to pay depends on the amount of income that you earn and on your personal circumstances. There are a range of income tax reliefs available that can reduce the amount of tax that you have to pay. Notice of determination of tax credits and standard rate cut-off point.
At the start of the tax year, the Revenue Commissioners will send you a Notice of determination of tax credits and standard rate cut-off point. This shows the rate of tax that applies to your income and the tax credits that reduce the tax payable. Revenue will also send a summary of this certificate to your employer so that your employer can deduct the correct amount of tax.
The Universal Social Charge came into effect from January 2011 – see more about the Universal Social Charge Here
If you are changing job or starting work for the first time, and your employer has not received this information from Revenue or a previous employer, you will be taxed on a temporary basis called emergency tax.
Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income. The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band.
The remainder of your income is taxed at the higher rate of tax, 40%.
The amount that you can earn before you start to pay the higher rate of tax is known as your standard rate cut-off point.
Personal Tax Credits 2021
The tax credits and bands have not changed since 2019
Single Taxpayers
Personal tax credits of €1650
PAYE tax credit of €1650
Income Tax after subtracting deductions from total pay:
20% on the first €35,300 ; 40% on the balance
Married Taxpayers (two incomes)
Personal tax credits of €3,300
PAYE tax credit of €1650
Income Tax after subtracting deductions from total pay:
20% on the first €70,600 ; 40% on the balance
Married Taxpayers (single income)
Personal tax credits of €3,300
PAYE tax credit of €1650
Income Tax after subtracting these deductions from total pay:Income Tax Rate : 20% on the first €44,300 and 40% on the balance
See this page for more information on Take Home Pay in Ireland