Any income you earn is charged at the standard rate of 20% up to a certain amount. This amount is called your standard rate cutoff point. Anything you earn above this amount is charged at a higher rate of tax, which is currently 40%.
So how much tax you pay mainly comes down to how much you earn and your circumstances, e.g. are you single or married, do you look after dependents, and more. You'll see how much tax you pay on your payslip.
| Your status | Income | Rate |
| Single person without dependents or children | €40,000 | 20% |
| One parent family | €40,000 | 20% |
| Married Couple/civil* partners one income | €49,000 | 20% |
| Married Couple/Civil partners, two incomes | Up to €73,600 (increase limited to the amount of the second income) | 20% |
| All Categories | Earned Income remainder | 40% |
For example:
If one person is earning €48,000 and their spouse or civil partner is earning €25,000: The standard rate cutoff point for the couple is €44,300 plus €26,300.
The increase in the standard rate band isn’t transferable between spouses/civil partners so the first spouse’s tax bands would be calculated as €44,300 @ 20% = €8,860 and €3,700 @ 40% = €1,480.
The second spouse or civil partner's tax bands would be calculated as €25,000 @ 20% = €5,000 and €0 @ 40% = €0 (total €5,000).
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