Ireland: Guide To Personal Tax Rates & Credits 2017

Last Updated: 24 January 2018
Article by Ronan T. O'Grady

PERSONAL TAX RATES & BANDS 2017


Single, Widowed or a Surviving Civil Partner without qualifying children

€33,800 @ 20%, Balance @ 40%

Single, Widowed or a Surviving Civil Partner qualifying for One Parent Family Tax Credit (2013)

€37,800 @ 20%, Balance @ 40%

Married or in a Civil Partnership - one Spouse or Civil Partner with income

€42,800 @ 20%, Balance @ 40%

Married or in a Civil Partnership - both Spouses or Civil Partners with income

€42,800 @ 20% (with an increase of €24,800 max), Balance @ 40%


PERSONAL TAX CREDITS 2017

Single Person

€1,650

Married Person or Civil Partner

€3,300

Widowed Person or Surviving Civil Partner - qualifying for Single Person Child Carer Credit

€1,650

Widowed Person or Surviving Civil Partner without qualifying children

€2,190

Single Person Child Carer Credit

€1,650

Widowed Person or Surviving Civil Partner in year of bereavement

€3,300

Widowed Person or Surviving Civil Partner Tax Credit (with qualifying child) - Bereaved in 2016

€3,600

Home Carer Tax Credit

€1,100

 PAYE Tax Credit

€1,650

Earned Income Tax Credit

€950

Age Tax Credit if Single, Widowed or Surviving Civil Partner

€245

Age Tax Credit if Married or in a Civil Partnership

€490

Incapacitated Child Tax Credit

€3,300

Dependent Relative Tax Credit

€70

Blind Person's Tax Credit – Single/One Spouse/Civil Partner Blind*

€1,650

Blind Person's Tax Credit - Both Spouses or Civil Partners Blind

€3,300

Incapacitated Person - Relief for Employing a Carer

€75,000


EXEMPTION LIMITS 2017


Single/Widowed/Surviving Civil Partner 65 years of age or over

€18,000

Married/Civil Partnership 65 years of age or over

€36,000

Single/Widowed/Surviving Civil Partner/Married or in a Civil Partnership 65 years of age or over - Additional for 1st and 2nd qualifying child

€575

Single/Widowed/Surviving Civil Partner/Married or in a Civil Partnership 65 years of age or over - Additional for each subsequent qualifying child

€830

Marginal Relief Tax Rate*

40%

 *The Marginal Relief Tax Rate only applies to persons 65 years of age or over.

CHILDCARE SERVICES RELIEF

  • Childcare Services Relief is granted on income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000, the income is exempt from tax.

HEALTH EXPENSES RELIEF

  • Individuals may claim tax relief at the standard rate of tax (with the exception of nursing home expenses for which tax relief is available at your highest rate of tax) for certain health expenses incurred by you, on your own behalf or on behalf of another person. (Routine dental and ophthalmic care, do not qualify for relief).

HOME CARER TAX CREDIT

  • A tax credit, (subject to certain conditions) at the standard rate of tax (20%) is available for Married Couples or Civil Partners where one Spouse or Civil Partner (the 'home carer') works in the home, caring for one or more dependent persons (who usually live with the couple for the year).

MEDICAL INSURANCE PREMIUMS RELIEF

  • Tax relief in respect of medical insurance premiums entered into or renewed on or after 16th of October, 2013 is restricted to; the premium paid up to a maximum of €1,000 per adult and €500 per child covered by a policy.

HOME RENOVATION INCENTIVE SCHEME

  • Homeowners are entitled to a tax credit for qualifying expenditure incurred on their principal private residence to include; repair, renovation or improvement per the following conditions:
  • Work must be carried out between 25th, October 2013 and on or before the 31 December, 2018.
  • Expenditure must be greater than €5,000 (including VAT at 13.5%) and relief can be claimed up to a maximum of €30,000 (before VAT).
  • The tax credit will be 13.5% of the cost of the works (before VAT).

FIRST TIME BUYER HELP TO BUY SCHEME 2017

  • The Help to Buy Scheme is a new measure announced as part of the Budget 2017. It is available to first time buyers who signed contracts to purchase their home on, or after 19 July, 2016, and will run until 31 December 2019.
  • First time buyers will be able to claim a tax rebate equal to 5% of the value of the house they are buying.
  • The Revenue will begin to accept rebate applications from January 2017.
  • The Scheme will only apply to new builds and self builds.

MORTGAGE INTEREST RELIEF

  • Up until 2020, interest paid on qualifying home loans taken out after 1st January, 2004 and on or before 31st December, 2012 will qualify for tax relief (subject to the exceptions, general rates and thresholds).

RENT-A-ROOM RELIEF

  • Where an individual rents a room in their main residence as residential accommodation, income may be exempt from income tax where the aggregate of the gross rents and any sums for meals or other services received is below €12,000. The exemption rate will increase to €14,000 for 2017.

DOMICILE LEVY

  • Citizenship has been removed as a requirement for the payment of the domicile levy.
  • The domicile levy will be payable by Irish domiciled individuals:-
  • Whose qualifying Irish assets exceed €5m;
  • Whose worldwide income exceeds €1m; and
  • Whose liability to income tax for the relevant year is less than €200,000.

TAX RELIEF ON CHARITABLE DONATIONS

  • From 1 January 2013, for a charitable donation to be eligible for tax relief the benefit must go to an "eligible charity" or an "approved body", and the value of a donation must be above €250. There is an annual limit of €1,000,000 per individual. Tax relief in respect of charitable donations by individuals (whether self-assessed or PAYE-only taxpayers) to an approved body is grossed up at a specified rate of 31%.
  • For example: A donation of €500 will be grossed up at 31% as follows: €500*100/69 = €724.63 so the tax refund will be €724.63-€500 = €224.64.

TAX RELIEF ON TUITION FEES

  • Tax relief at the standard rate (20%) can be claimed on tuition fees (including the student contribution) paid to third level institutions during any tax year. However, this relief does not cover examination fees, diagnosis registration fees or administration fees paid.
  • The max limit for qualifying fees for the academic years 2016/17 is €7,000, per individual, per course.

Year

Full Time

Part Time

2013

€2,500

€1,250

2014

€2,750

€1,375

2015

€3,000

€1,500

2016

€3,000

€1,500

2017

€3,000

€1,500

DEPOSIT INTEREST RETENTION TAX

  • The Deposit Interest Retention Tax (DIRT) rate in 2016 was; 41% for ordinary deposit accounts, exit tax on life assurance policies and investment funds.
  • The DIRT rate in 2017 will be reduced to 39% in respect of interest paid on all accounts with effect from 1st January, 2014. However, it is yet to be clarified if the 41% rate will remain applicable for exit tax on life assurance policies and investment funds.
  • The DIRT rate will continue to reduce after 2017 by 2% each year until it reaches 33% in 2020.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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