Wednesday, July 4, 2012

New 50% income tax rate could yield €490 million

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
Average earnings €403,760 €136,710 €100,000
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.

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