Income Taxes
- Tax Bands and Credits were reduced from
Income tax bands
· The standard rate tax bands display the level of income one can have before having to pay higher rate income tax (currently 41%).
Standard Rate Bands from | ||
2010 (€) | 2011 (€) | |
Single / Widowed | 36,400 | 32,800 |
Married One Income | 45,400 | 41,800 |
Married Two Incomes* | 72,800 | 65,600 |
One Parent / Widowed Parent | 40,400 | 36,800 |
*The maximum that can be transferred between spouses is €45,400 in 2010 and €41,800 in 2011.
Income tax: age exemption limits*
· If an individual or married couple (Age 65+) earn less than outlined below, they are not liable for Income tax on their earnings.
Age (65+) Exemption Limits from | ||
2010 (€) | 2011 (€) | |
Single | 20,000 | 18,000 |
Married | 40,000 | 36,000 |
*Age credits and exemptions are being abolished over 4 years.
USC
· The Universal Social Charge is a new levy which applies to gross income and replaces the Health and Income levy. This took effect on 01st January 2011. The rates are as follows:
Individuals Under the age of 70
0% | below €4,004* |
2% | €0 to €10,036 |
4% | €10,037 to €16,016 |
7% | above €16,016 |
*Where an individuals total income does not exceed €4,004.
Individuals aged 70 and over
2% | Up to €10,036 |
4% | Over €10,036 |
· People aged 70 or over will pay the Universal Social Charge at a maximum rate of 4%, irrespective of income. Social welfare payments (payments from the Department of Social Protection) and similar payments are exempt from the USC. Medical card holders will pay the USC at a maximum rate of 4%.
PRSI
· The PRSI ceiling of €75,036 has been abolished. This means that PRSI is payable on all income, previously you paid only on income up to €75k.
· The Class S (Self-Employed) PRSI rate has increased from 3% to 4%.
· As mentioned above, the PRSI relief on employer contributions to occupational pensions has been reduced by 50%.
No comments:
Post a Comment