Single or widowed or surviving civil partner (without qualifying child) – first €44,000 taxed at 20% and balance taxed at 40%.

Single or widowed or surviving civil partner, qualifying for Single Person Child Carer Credit – the first €48,000 is taxed at 20% and the balance taxed at 40%.

Married or in a civil partnership, one spouse or partner has an income – the first €53,000 is taxed at 20% and the balance is taxed at 40%.

Married or in a civil partnership, both spouses or partners have incomes – the first €53,000 is taxed at 20% (with an increase of €35,000 max) and the balance is taxed at 40%.

Tax Credits 

Home Carer Tax Credit

The Home Carer Tax Credit is given to married couples or civil partners (who are jointly assessed for tax) where only one spouse or civil partner works and the other stays at home to take care of a dependent person* (a child from whom child benefit is payable, a person over 65 or a person with a disability who requires care). Also, note that you can’t claim both the Home Carer Credit and the increased rate band.

You should claim whichever is of more benefit to you. When you apply with Taxback, we can tell you which is best.

* A dependent person you're caring for cannot be a spouse or civil partner.

Read more about the Home Carer tax credit here. 

Single Persons Child Carer Credit

The Single Person Child Carer Credit (SPCCC) is a tax credit for people caring for children on their own. If you were claiming SPCCC at the beginning of the year in which your marriage or civil partnership is registered, you can continue to claim it for the remainder of the year. You can read more about the Single Person Child Carer Credit here. 

Age Tax Credit

If you turn 65 during the tax year, then you’ll be awarded an Age Tax Credit of €245. This amount increases to €490 for a married couple or civil partnership and is awarded as soon as either member of the couple reaches 65. You can claim the credit if either you or your spouse or civil partner reaches the age of 65 at any time during the tax year.

You’re both entitled to the credit even though only one person is 65. However, if you choose to be assessed under separate treatment, both partners must be 65 to claim the credit.

You or your partner may not have to pay any tax at all if your total income is less than the exemption limit.

Exemption limits

If you’re 65 years or over you won’t pay any tax where your total income is less than the following amounts:

With qualifying children, the exemption limits are increased by:

• €575 each for your first two children
• €830 for each additional child

To qualify, your child must be:

• born during the year
• under 18 years of age at the start of the year
• aged over 18 and attending college on a full-time basis or training for a trade or profession for a maximum of two years
• became incapacitated before they turned 21
• became incapacitated after turning 21 but at college full-time, or training for a trade or profession for a maximum of 2 years

Marginal relief

If your income is more than the outlined exemption limit, you might still be able to claim marginal relief. This would mean that any income in excess of the exemption limits will be subject to 40% tax and no tax credits can be utilized to reduce the taxes due. This relief is only given when it is more beneficial than using your tax credits.

When you’re allowed marginal relief, your employer or pension provider will receive a Tax Credit Certificate which will display the granted relief.

You can read more about Marginal Relief here.

Universal Social Charge

The Universal Social Charge (USC) applies to both you and your spouse or civil partner individually. In this regard, there is no advantage from a USC perspective whether you're married or not.

Transferring assets

If you’re living with your spouse or civil partner, you can transfer an asset to them without having to pay Capital Gains Tax. Your partner will also not have to pay Capital Acquisitions Tax on the transfer as transfers between spouses are exempt from CGT and CAT.

Unemployment as a married couple

There are a few options should either yourself or your partner stop working during the year.

• Firstly, you can transfer any unused credits or rate band to the other spouse or civil partner if you're jointly assessed
• Alternatively, you can withdraw from separate assessment (within the time limits) and transfer any unused credits or rate band to the other spouse or civil partner
• Or you could choose to switch to joint assessment if you're assessed under separate treatment.

Tax Implications for married couples with one or both partners residing outside Ireland

A relationship where one partner is resident in Ireland and one partner isn’t will affect the tax situation for the couple in a number of ways:

1. If one partner has no income, you can choose joint assessment and claim the married or civil partner’s tax credit and the increased rate band

2. If both partners have income you’ll be assessed under separate treatment and taxed on your income only. You’ll be able to claim the single person’s tax credit and rate band. However, if the tax you pay individually is greater than what you would have paid under joint assessment, you may be able to claim additional relief. You can choose joint assessment and claim the appropriate credits and rate band.

3. Where neither partner is a resident in Ireland, each partner with taxable income in Ireland will be treated as if they were single and may claim proportionate tax credits in certain cases (i.e. portion of tax credits based on income taxable in Ireland over the worldwide income earned during the year).

The Employee Tax Credit for married couples

The Employee Tax Credit will be given to you and your spouse/civil partner separately if you have PAYE income. After year end, you can claim any credits or rate band that your spouse/civil partner didn’t use. You’ll also have to decide between filing a single or a joint tax return. In a joint tax return, you must include details of income and expenses for both partners.

To choose a separate assessment, you must contact Revenue between 1 October of the previous year and 31 March of the year you would like to apply. Either spouse or civil partner can take the decision to opt for a separate assessment. The person who originally requested a separate assessment must also request any necessary change in the assessment.

It’s important to remember that a separate assessment can’t be backdated and will last until you request to change it. Overall the tax you pay under this option is the same as the tax you would pay under joint assessment.

Another option is separate treatment also known as single treatment. With this option, you’ll receive the same tax credits and rate band as a single person. Crucially, under separate treatment, you can’t claim any of your spouse or civil partner’s unused credits, rate band, or any payments made by the other person. You won’t be able to claim the Home Carer tax credit either.

Simply put, you both have to pay your own taxes and/or file your own returns. To choose the separate treatment option, you must inform Revenue in the year that you want to apply. Similarly to separate assessment, the decision to choose separate treatment can be made by either spouse or civil partner and must be withdrawn by whoever requests it.

If you were married outside of Ireland, you may still be able to get taxation benefits in Ireland. There are also a number of overseas marriages and civil partnerships Revenue recognise for tax purposes. This means that if your foreign registered marriage or civil partnership is recognised, you’ll be taxed in the same way as a couple who were legally married in Ireland. 

You should send Revenue details of the date, jurisdiction and title of your registered relationship, as well as your own and your partner’s PPS number.

Taxation of married couples and civil partners

Getting married can affect many aspects of your life in Ireland – ranging from life insurance and pensions to inheritance and presumption of paternity. It can also have a significant impact on your taxation status. All married couples and registered civil partners are treated the same way for tax purposes. Once you’re married/registered in a civil partnership, you should inform Revenue as soon as possible.

In your year of marriage or civil partnership you’ll be taxed as normal – i.e. as single people. However, the good news is that if you paid more tax individually in that year than you would have if you were taxed as a couple, you can claim a refund of the difference after 31 December.

Any refund due will be from the date of marriage/registration. In other words, the amount you receive will be paid in proportion to the number of months that you were married/in a civil partnership. After the year of your marriage, there are 3 options for calculating tax.

You can pick whichever option is of most benefit for you as a couple:

1. Joint assessment 

2. Separate assessment 

3. Separate treatment

Joint assessment

With joint assessment, you can choose whether you or your partner will be the assessable spouse. The person nominated will be responsible for filing tax returns and paying any tax due.

By not contacting Revenue to nominate a person, it’s likely they’ll automatically choose the person with the highest income in the latest year for which the income of both people is known. This person continues to be the assessable person until you jointly elect to nominate the other person.

This is the option that benefits most couples as it allows you to split your tax credits and rate band with your partner. If you choose this option, you must inform Revenue before 31 March in the year of assessment.

It’s important to note that regardless of the assessment option you choose, there are a number of expenses you can claim to reduce your tax liability. Health expenses are one of the most common deductions. You can claim for numerous health expenses (including doctor and consultant fees, drugs and medicines prescribed by a doctor, and much more) claimed throughout the year by you or your spouse or civil partner.

Separate assessment

If you’re due a refund at the end of the year, this will be repaid to each person in proportion to the amount of tax each person paid. Separate Assessment Under the separate assessment option, you’ll be taxed as a single individual. If you’re claiming any of the tax credits below, they’ll be split equally between both people.

• Married or Civil Partner’s Tax Credit
• Age Tax Credit
• Blind Tax Credit
• Incapacitated Child Tax Credit

Additionally, any unused tax credits, reliefs and rate bands can be transferred between each spouse or civil partner. This is the same as joint assessment. For this reason, you cannot transfer:

• the Employee Tax Credit
• employment expenses
• the increase in the standard rate band

Separate treatment

Under separate treatment you, and your spouse or civil partner, are taxed as if you were not married or in a civil partnership. 

Under separate treatment you:

• are taxed on your own income only
• pay your own tax and claim your own tax credits
• complete your own tax return

The main difference between separate treatment and separate assessment is that you cannot transfer your unused tax credits, reliefs and rate bands to your spouse or civil partner. 

Allocating tax credits

You can allocate your tax credits and rate band however you wish – provided both you and your partner have taxable income. However, you can’t transfer the employee tax credit, employment expense or increase in the standard rate band. Both partners will receive Tax Credit Certificates showing the allocation of the credits and rate band.

If you or your partner are self-employed, don’t worry. You can still pick a joint assessment. You’ll need to choose between paying most of the tax under the PAYE system or in a lump sum under self-assessment. You can do this by allocating your credits and rate band appropriately. If you decide to pay most of your taxes through PAYE, your credits (apart from the employee tax credit and employment expenses), should be allocated to the self-employed person.