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| Personal Tax Credits |
| Personal Tax Credits | Tax Year 2007 | Tax Year 2008 |
€ |
€ |
|
| Single Person’s Tax Credit | 1,760 |
1,830 |
| Married Person’s Tax Credit | 3,520 |
3,660 |
| Widowed Person’s Tax Credit | ||
| - qualifying for One-Parent Family Tax Credit | ,1,760 |
1,830 |
| - without dependent children | 2,310 |
2,430 |
| - in year of bereavement | 3,520 |
3,660 |
| One-Parent Family Tax Credit | ||
| (with qualifying dependent children) (See Note1 ) Widowed, Deserted, Separated or Unmarried |
1,760 |
1,830 |
| Widowed Parent Tax Credit | ||
| Bereaved in 2007 | - |
4,000 |
| Bereaved in 2006 | 3,750 |
3,500 |
| Bereaved in 2005 | 3,250 |
3,000 |
| Bereaved in 2004 | 2,750 |
2,500 |
| Bereaved in 2003 | 2,250 |
2,000 |
| Bereaved in 2002 | 1,750 |
- |
| Home Carer Tax Credit (Max) | 770 |
900 |
| PAYE Tax Credit | 1.76,0 |
1,830 |
| Age Tax Credit | ||
| (a) Single/Widowed | 275 |
325 |
| (b) Married | 550 |
650 |
| Incapacitated Child Tax Credit (See Note ) | 3,000 |
3,660 |
| Dependent Relative Tax Credit (See Note ) | 80 |
80 |
| Blind Person’s Tax Credit (single person) | 1,760 |
1,830 |
| (one spouse blind) | 1,760 |
1,830 |
| (both spouses blind) | 3,520 |
3,660 |
| Additional Allowance for Guide Dog | 825 |
825 |
| Incapacitated Person - Allowance for Employing a Carer | 50,000 |
50,000 max |
Tax Year 2007 |
Tax Year 2008 |
|
| Note : The child’s/relative’s income limits are: | € |
€ |
| One-Parent Family Tax Credit | nill |
nill |
| Incapacitated Child Tax Credit | nill |
nill |
| Dependent Relative Tax Credit | *12,745 |
*13,473 |
*In the case of Dependent Relative Tax Credit, if the relative’s income exceeds the relevant limit no tax credit is due.
| Exemption Limits |
| Personal Circumstances | Tax Year 2007 |
Tax Year 2008 |
€ |
€ |
|
| Single/Widowed | ||
| under | 5,210 |
5,210 |
| years of age or over | 9,000 |
20,000 |
| Married | ||
| under | 10,420 |
10,420 |
| years of age or over | 38,000 |
40,000 |
| Additional for Dependent Children | ||
| st and 2nd child (each) | 575 |
575 |
| Each subsequent child | 830 |
830 |
| Marginal Relief Tax Rate | 40% |
40% |
| Tax Rates and Tax Bands |
| Personal Circumstances | Tax Year 2007 |
Tax Year 2008 |
| Single/Widowed | 34,000 @ 20% |
35,400 @ 20% |
| without dependent children | Balance @41% |
Balance @41% |
| Single/Widowed | 38,000 @ 20% |
39,400 @ 20% |
| qualifying for One-Parent Family tax credit years of age or over | Balance @41% |
Balance @41% |
| Married couple | 43,000 @ 20% |
44,400 @ 20% |
| (one spouse with income) | Balance @41% |
Balance @41% |
| Married couple | 43,000 @ 20% |
44,400 @ 20% |
| (both spouses with income) | (with an increase of 25,000 max.) Balance @41% |
(with an increase of 26,400 max.) Balance @41% |
| Note: The increase in the standard rate tax band is restricted to the lower of €25,000 in 2007, €26,400 in 2008 or the amount of the income of the spouse with the lower income. The increase is not transferable between spouses. | ||
| Rent-a-Room Relief |
| Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income of up to €7,620 in 2007 and €10,000 in 2008 is exempt from tax. Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected. For more information see Leaflet IT 70. |
| Childcare Services |
| Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. Where the gross annual income from the provision of childcare service does not exceed €15,000 in 2007 or 2008 the income is exempt from tax. The childcare service must be provided in the carer's home, not the children's home and no more than 3 children may be cared for at any time. |
| Rent Relief for Private Rented Accommodation |
| Relief is due at the standard rate of tax (20%) in the tax years 2007 and 2008 subject to the following upper limits: |
| Personal Circumstances | Tax Year 2007 |
Tax Year 2008 |
| Single | ||
| Under 55 Max. | 1,800 |
2,000 |
| Over 55 Max. | 3,600 |
4,000 |
| Widowed/Married | ||
| Under Max. | 3,600 |
4,000 |
| Over Max | 7,200 |
8,000 |
Relief can be claimed by completing Form Rent.
| Home Carer Tax Credit |
A tax credit at the standard rate of tax (20%) in the tax years 2007 and 2008 is available for married couples where:
One spouse (the ‘home carer’) works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to Social Welfare child benefit, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.
The home carer’s income is not in excess of€5,080. A reduced tax credit applies where the income is between €5,080 and €6,620 in 2007 and €5,080 and €6,620 in 2008.
The tax credit is not available to married couples that are taxed as single persons. Neither is the tax credit available to married couples with combined incomes over €43,000 in the tax year 2007 and €44,400 in the tax year 2008 and who claim the increased standard rate tax band for dual income couples. For more information and also to claim the relief due complete the application form in Leaflet IT and send it to your local Revenue office. Alternatively, you can telephone your Regional PAYE LoCall number (see page ) with details of your claim.
| Trade Union Subscriptions |
An annual flat rate allowance of €300/2007, €350/2008 at the standard rate of tax 20% (tax credit €60/2007 and €70/2008) is due for Trade Union subscriptions paid in 2007 and 2008. The full allowance is available annually regardless of the actual amount of the subscription paid. If you are/were a member of a Trade Union at any time during 2007 or 2008 and you have not been granted relief for subscriptions made, you can phone your Regional PAYE LoCall number.
| Health / Medical Expenses Relief |
You may claim tax relief on a Form MED , at your highest rate of tax, i.e. 20% /41% 2007/2008, for certain medical expenses incurred by you, your spouse, your dependent child or a dependent relative. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief. You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Quinn Healthcare, VHI, Vivas, a Health Authority, or where a compensation payment is made or will be made. Prior to 2007 the first €125 (one person) or €250 (two or more people) of any medical expenses incurred was borne by the claimant. This no longer applies for 2007 and following years. For more information see Leaflet IT , Form MED 1 or phone your Regional PAYE LoCall number.
| Tuition Fees |
Tax relief at the standard rate of tax (20%) in the tax years 2007 and 2008 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2007/2008 and 2008/2009 is €5,000. For more information see Leaflet IT 31.
| PRSI & Health Contributions - Employers/Employees |
| Class A (Normal rate at which contributions are made) | |||
| Employee’s Income chargeable as below: | |||
| Tax year 2007 | Earnings up to €48,800 to PRSI @ 4% plus a Health contribution of 2% | 6% |
10.75% |
| Earnings from €48,800 to €100,000 to a Health contribution of 2% | 2% |
10.75% |
|
| Earnings over to€100,100 ( €1,925 per week, €3,850 per forthight & € 8,342 per month) to a Health contribution of 2,5% | 2.5% |
10.75% |
|
| Tax year 2008 | Earnings up to €50,700 to PRSI @ 4% plus a Health contribution of 2% | 6% |
10.75% |
| Earnings from€50,700 to €100,100 to a Health contribution of 2% | 2.5% |
10.75% |
|
| Earnings over to €100,100 ( €1,925 per week, €3,850 per forthight & €8,342 per month) to a Health contribution of 2,5% | 2% |
10.75% |
|
Note: For 2007 and 2008 an additional 0.5% Health Contribution has been introduced on earnings exceeding €1,925 per week (equivalent to €3,850 per fortnight and to €8,342 per month). Employees are exempt from PRSI on the first €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €352 or less per week in 2008 ( €339 in 2007) are exempt from PRSI and Health Contribution. However, where earnings exceed €352 per week in 2008 (€339 in 2007), the employee’s PRSI Free Allowance remains at €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €500 or less per week in 2008 (€480 in 2007) are exempt from Health Contribution of 2%. Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the 2% Health Contribution.
All Medical Card holders (including people aged 70 or over) are also exempt from this contribution.
| PRSI & Health Contributions - Self-Employed |
| Class S (Self-Employed) | ||
Total |
||
| Tax year 2007 | 3% PRSI and 2% Health Contribution on all income up to €100,100 | 5% |
| 3% PRSI and 2.5% Health Contribution on all income over €100,100 | 5.5% |
|
| Tax year 2008 | 3% PRSI and 2.5% Health Contribution on all income over €100,100 | 5% |
| 3% PRSI and 2.5% Health Contribution on all income over €100,100 | 5.5% |
|
Self-employed persons are exempt from Health Contribution of 2% where the annual income is €24,960 or less in 2007 and €26,000 or less in 2008.The minimum annual PRSI contributionis €253.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the 2% Health Contribution. All Medical Card holders (including people aged 70 or over) are also exempt from this contribution.
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 | Current Income Tax Rates |
| Income Tax Exemption Limits |
| Main Personal Tax Credits for 2003/2004 |
| Tax Relief for Loan Interest |
| Historical Irish Income Tax Rates (1980 to 1990) |
