Know Your Rights: Income tax bands and rates

Question

I’m a PAYE worker. What income tax will I pay in 2018?

Answer

Changes to income tax bands were announced as part of Budget 2018. The amount of tax that you have to pay depends on your personal circumstances.

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, which is 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.

For 2018 the standard rate of tax remains at 20%, but the standard rate tax bands have been increased as follows:

	2018 €	2017 €
Single person	34,550 @ 20% Balance @ 40%	33,800 @ 20% Balance @ 40%
Married couple/civil partners, one income	43,550 @ 20% Balance @ 40%	42,800 @ 20% Balance @ 40%
Married couple/civil partners, two incomes	Up to 69,100 @ 20% Balance @ 40%	Up to 67,600 @ 20% Balance @ 40%
One-parent family	38,550 @ 20% Balance @ 40%	37,800 @ 20% Balance @ 40%

There is a range of income tax reliefs available, which can reduce the amount of tax that you have to pay. Further information is available from the Citizens Information Service below.

Know Your Rights has been compiled by Boyle Citizens Information Centre which provides a free and confidential service to the public. Tel: 0761 07 6330

Address: Elphin Street, Boyle, Co. Roscommon

Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service - 0761 07 4000