Personal Tax
This section provides up-to-date information on key tax rates, credits and allowances that apply to individuals in Ireland.
Income tax rates
|
|
2011
|
|
|
Single and widowed person: no dependent children |
32,800 |
balance |
|
Single and widowed person: dependent children |
36,800 |
balance |
|
Married couple: one income |
41,800 |
balance |
|
Married couple: two incomes |
65,600 |
balance |
|
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Main personal tax credits
Single persons |
2011
|
Married Persons |
2011
|
|
Single person with no dependent child |
1,650 |
Married |
3,300 |
|
Single parent with dependent child |
3,300 |
Home Carers tax credit |
810 |
|
Incapacitated child credit |
3,300 |
Incapacitated child credit |
3,300 |
|
Employee tax credit |
1,650 |
Employee tax credit |
1,650 |
|
Medical expenses (a) |
Standard rate |
Medical expenses (a) |
Standard rate |
|
Certain fees for third level colleges (b) |
Standard rate |
Certain fees for third level colleges (b) |
Standard rate |
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(a)Expenses paid to nursing homes which provide 24 hour nursing care will continue to be tax relieved at the marginal tax rate.
(b)The first €2,000 of any qualifying fees paid for full time qualifying courses should be disregarded in calculating the available relief. In the case of a part-time course, the first €1,000 of the qualifying fees should be disregarded.
Allowances at marginal rate
|
|
2011
|
|
|
Business Expansion Scheme (BES/Seed Capital Scheme) - maximum relief per annum (a) |
150,000 |
|
|
Employment and Investment Incentive scheme (EII) |
150,000 |
|
|
Qualifying film relief |
50,000 |
|
|
Pension contributions |
15%-40% |
|
|
|
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(a) BES, EII and Film reliefs are “specified reliefs” for the purpose of the high income earner’s restriction.
(b)The EII replaces the former Business Expansion Scheme (BES) and is subject to a commencement order, which has yet to be signed.
(c)The applicable percentage rate is based on age and the earnings cap for 2011 is €115,000.
Please note that certain tax breaks available to high income earners are restricted.
Exemption limits
|
Persons aged 65 and over |
2011
|
|
|
Single/widowed |
18,000 |
|
|
Married |
36,000 |
|
|
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Deposit interest retention tax (DIRT)
Applies at source to |
Rate |
|
|
Interest on standard deposit accounts |
27% |
|
|
Interest paid or credited on other deposit accounts |
30% |
|
|
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Tax residence
An individual is regarded as tax resident for a particular tax year if present in Ireland for 183 days or more in that year, or 280 days or more in that and the preceding year combined, including at least 30 days in each year. An individual is regarded as present in the State for a day if present for any part of a day.
Non-Irish domiciled individuals
Remittance basis of taxation (RBT) provides favourable taxation treatment for non-Irish domiciled individuals who are resident in Ireland in respect of applicable foreign income.
Resident, non-Irish domiciled |
Income/gains taxable in Ireland |
|
|
Irish source income |
Yes |
|
|
Foreign employment – Irish workdays |
Yes |
|
|
Foreign employment – non-Irish workdays |
Only if remitted |
|
|
Foreign personal income (eg rental income) |
Only if remitted |
|
|
Irish capital gains |
Yes |
|
|
Foreign capital gains |
Only if remitted |
|
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A "Special Expatriate Assignment Relief Programme" applies to individuals coming to Ireland to work for an overseas employer. Taxable employment income may be limited to the greater of the first €100,000 plus 50% of earnings and benefits in excess of €100,000 or total employment earnings and benefits received in or remitted to Ireland during the tax year.
Relief for mortgage interest payments
Mortgage interest tax relief is available in relation to loans used for the purchase, repair, development or improvement of a qualifying residence.
|
Rates at which tax relief is available |
Years
|
Years
|
Years
|
Years
|
Ceiling
|
Ceiling
|
|
First time-buyer |
25% |
22.5% |
20% |
0% |
€10,000 |
€20,000 |
|
Non first time-buyer |
15% |
15% |
15% |
0% |
€3,000 |
€6,000 |
|
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Benefits-in-kind (BIKs)
The majority of employee benefits are subject to PAYE, PRSI and the Universal Social Charge (USC). From 1 January 2011, certain share awards are treated in the same way as a BIK. The taxable benefit is treated as “notional pay” from which PAYE, PRSI and the USC are deducted. Special rules apply in relation to share awards granted prior to 2011 and to share options.
Company cars
The annual notional pay arising from the use of a company car is 30% of the Original Market Value. Certain reductions and reliefs are available for high business usage and reimbursement of costs by employees.
Preferential loans
Home loan – 5%
Other loans – 12.5%
BIKs exempt from income tax
- Provision of new bicycles and/or related safety equipment up to a cost of €1,000
- Provision by an employer of a monthly or annual bus/train/Luas pass
- Provision by an employer of free or subsidised childcare services
- Provision by an employer of a benefit to a value not exceeding €250
- Employer contributions to occupational pension schemes
