The estimated income of the top-10,000 earners in Ireland this year is estimated to be €5,959 million, or an average of €595,900 per person. The amount of annual income tax payable in this is €1,715 million – an effective tax rate of 29%
The effective tax rate does not include additional liability in respect of social charges – PRSI and Universal Social Charge. A married couple may elect for joint assessment and counted as one tax payer.
The following details relate to the top 1% of income earners; the top 10% of income earners and the top 20% of income earners: €
|Top 1%||Top 10%||Top 20%|
|Number of earners||21,650||216,500||433,000|
|Gross income||€8,742 million||€29,600 million||€43,300 million|
|Amount of tax||€2,463 million||€7,080 million||€9,294 million|
|Effective tax rate||28%||24%||21%|
The number of income earners earning more than €100,000 in 2012 is 113,500. The top rate of income tax is 41% which applies to single individuals earning over €32,800, married couples – one earning in excess of €41,800 and married couples – both earning in excess of €65,600.
Other streams of income are taxed at different rates. Deposit interest income is liable to tax at 30%.
If a 50% income tax rate was to be applied to incomes in excess of €100,000 the estimated yield in a full year would be €490 million.