15 Rate of charge

Summary

This section sets out the rates at which income tax is to be charged and the bands of income to which these rates are to be applied for the year 2022 and subsequent years of assessment. The section provides for a graduated charge to income tax on an individual’s taxable income on the basis set out in the Table to the section.

Part 1 of the Table sets out the rates applicable to single persons, widowed persons without children and married persons/civil partners assessed to tax as single persons,

Part 2 sets out the rates applicable to those who qualify for the single person child carer credit, and

Part 3 sets out the rates applicable to married persons and civil partners assessed to tax on their own and their spouses’/civil partners’ combined incomes.

Details

(1) Subject to the graduated charge to income tax applied to individuals (other than individuals acting in a fiduciary or representative capacity) by subsection (2), income tax at the standard rate of 20 per cent is chargeable for the year 2022 and subsequent years of assessment on all persons (for example, individuals, trustees, executors, etc.) within the charge to income tax.

(2) A graduated charge to income tax applies on an individual’s taxable income on the basis set out in the Table to the section. Part 1 of the Table sets out the rates applicable to single persons, widowed persons without children and married persons/civil partners assessed to tax as single persons. Part 2 sets out the rates applicable to those who qualify for the single person child carer credit. Part 3 sets out the rates applicable to married persons and civil partners assessed to tax on their own and their spouses’/civil partners’ combined incomes in accordance with section 1017. The Table may be summarised as follows:

(3) *Two income married couples/civil partners can get an increase of up to €27,800 giving them a combined standard rate band of €73,600.

(4) “specified income” in relation to subsection (3) means total income after deducting from such income any deduction attributable to a specific source of income and any relevant interest within the meaning of Chapter 4 of Part 8 (i.e., interest liable to Deposit Interest Retention Tax).

(5) Where all or any of the widened standard rate band results from income which is subject to tax under PAYE, then that increased band will only be used in accordance with the PAYE provisions of the Act in calculating the tax to be deducted from that income. This is to ensure that the increase in the standard band beyond €45,800, provided by subsection (3) is not transferable between the spouses/civil partners.

Relevant Date: Finance Act 2021