In­come tax bands and rates

Wicklow People (Arklow) - - NEWS -

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

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:

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.

Newspapers in English

Newspapers from Ireland

© PressReader. All rights reserved.