| MAIN PERSONAL TAX CREDITS |
| |
2011 EURO |
2012 EURO |
| Personal Tax Credit |
|
|
| Single Person |
1,650 |
1,650 |
| Married Couple/Single Parent |
3,300 |
3,300 |
| Employee PAYE Credit (1) |
1,650 |
1,650 |
| Widow(er) without dependent child |
2,190 |
2,190 |
One Parent Family (widowed person)
|
1,650 |
1,650 |
| Incapacitated Child |
3,300 |
3,300 |
Widowed Parent Bereaved in 2011
2010
2009
2008
2007
2006 |
-
3,600
3,150
2,700
2,250
1,800 |
3,600
3,150
2,700
2,250
1,800
- |
(1) Not available to proprietary Directors and the self employed |
| |
|
|
| Age Credit |
|
|
| Single/Widowed Person |
245 |
245 |
| Married |
490 |
490 |
| |
|
|
| Blind Persons Credit |
|
|
| Married (both spouses blind) |
3,300 |
3,300 |
| Single or married (one spouse blind) |
1,650 |
1,650 |
| |
|
|
| Other credits |
|
|
Home Carer's Credit (max)
|
810 |
810 |
Incapacitated Child (max)
|
3,300 |
3,300 |
Dependent Relative (max)
|
70 |
70 |
Trade Union Subs (max)
|
80 |
0 |
| |
|
|
|
| INCOME TAX RATES |
| Single & Widowed Persons: No
Dependent Children |
2011 EURO |
2012 EURO |
| 20% on first |
32,800 |
32,800 |
| Balance |
41% |
41% |
| |
|
|
| Single & Widowed Persons: Dependent
Children |
|
|
| 20% on first |
36,800 |
36,800 |
| Balance |
41% |
41% |
| |
|
|
| Married Couples: One Income |
|
|
| 20% on first |
41,800 |
41,800 |
| Balance |
41% |
41% |
| |
|
|
| Married Couples: Two Incomes* |
|
|
| 20% on first |
65,600 |
65,600 |
| Balance |
41% |
41% |
| |
|
|
| * Excess non transferable between
spouses |
41,800 |
41,800 |
| |
|
|
| Tax Allowance |
|
|
| Cost of employing carer for incapacitated
individual allowed at marginal rate of tax |
50,000 |
50,000 |
| Rent-a-Room Relief (private residence) |
10,000 |
10,000 |
|
| UNIVERSAL SOCIAL CHARGE (USC) |
The USC is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions. The USC is effective from 1 January 2011 and and will be on a cumulative basis from 1 January 2012.
|
USC Thresholds (Aged Under 70years)
|
2011 |
2012 |
| Income up to €10,036 |
2% |
2% |
| Income €10,036.01 to €16,016 |
4% |
4% |
| Income above €16,016 |
7% |
7% |
| |
| USC Thresholds (Aged 70years or over) |
2011 |
2012 |
| Income up to €10,036 |
2% |
2% |
| Income above €10,036 |
4% |
4% |
Exempt Categories
- Where an individual’s total income for a year does not exceed €4,004 in 2011 and €10,035 in 2012
- All Dept of Social Protection payments income already subjected to DIRT.
|
|
| MORTAGE INTEREST - TAX RELIEF |
| Interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012 will (subject to the exception below) qualify for tax relief up to the end of 2017 at the following general rates and thresholds. |
| First-Time Buyers - The tax relief on interest paid on qualifying home loans is 25% for years 1 and 2; 22.5% for years 3, 4 & 5 and 20% for years 6 and 7. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €20,000 for individuals who are married, in a civil partnership or widowed and €10,000 for individuals who are unmarried and not in a civil partnership. After year 7, the rates and thresholds for relief are as for non-first time buyers. |
| Non-first time buyers - The tax relief on interest paid on qualifying home loans is 15%. The upper thresholds in respect of the amount of interest paid qualifying for tax relief are €6,000 for individuals who are married, in a civil partnership or widowed and €3,000 for individuals who are unmarried and not in a civil partnership. |
| |
| Exception - However, notwithstanding the rates of tax relief mentioned above, for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008, the rate of tax relief on the interest paid on the loan to purchase that property will, for the tax years 2012 to 2017, be 30%.
Mortgages taken out prior to 1 January 2004 are no longer eligible for mortgage interest relief. However, top up loans/equity release loans taken out since 1 January 2004 on these pre-2004 loans may be eligible for mortgage interest relief, provided they adhere to eligibility criteria as listed above. |
| |
The relief will be abolished completely by the end of 2017. |
|
| RENT TAX RELIEF |
Relief for rent credit will be withdrawn on a phased basis over the next 7 years by reducing the amount of rent that can be relieved at the standard rate of income tax as indicated in the following table.
|
| Tax Year |
Single Under 55 |
Single Over 55 |
Widowed/ Married under 55 |
Widowed/ Married over 55 |
| 2010 |
2,000 |
4,000 |
4,000 |
8,000 |
| 2011 |
1,600 |
3,200 |
3,200 |
6,400 |
| 2012 |
1,200 |
2,400 |
2,400 |
4,800 |
| 2013 |
1,000 |
2,000 |
2,000 |
3,600 |
| 2014 |
800 |
1,600 |
1,600 |
3,200 |
| 2015 |
600 |
1,200 |
1,200 |
2,400 |
| 2016 |
400 |
800 |
800 |
1,600 |
| 2017 |
200 |
400 |
400 |
800 |
| 2018 |
0 |
0 |
0 |
0 |
| Claimants who were not renting at 7 December 2010 and who subsequently enter into a rental agreement will not be able to claim relief. |
|
| EXEMPTION LIMITS |
| Single/Widowed |
2011 EURO |
2012 EURO |
| Single/ Widowed 65 years of age or over |
18,000 |
18,000 |
| Married 65 years of age or over |
36,000 |
36,000 |
Single/Widowed/Married 65 years of age or over
Additional for 1st and 2nd dependent child |
575 |
575 |
Single/Widowed/Married 65 years of age or over
Additional for each subsequent dependent child |
830 |
830 |
| Marginal Relief Tax Rate |
40%* |
40%* |
| * The Marginal Relief Tax Rate only applies to persons 65 years of age or over. |
|
|