(1) Not
available to proprietory 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
Service Charges (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
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.
Disclaimer: Whilst every effort has been made to ensure the accuracy and reliability of the information published within this website, you choose to use this information and rely on any results at your own risk. We will not under any circumstances accept responsibility or liability for any losses that may arise from a decision that you may make from the use of, or reliance on this information.
