Calculating your Income Tax
What is the difference between gross and taxable pay?
Gross pay is the employee’s pay of any kind, including:
- notional pay
- share based remuneration
- the employee's pay before any pension contributions or salary sacrifice deductions are made.
Taxable pay is your gross pay, less any contributions you make to a:
- Revenue approved pension scheme
- Revenue approved Permanent Health Benefit (Income Continuance) scheme
- Salary Sacrifice Arrangement
- Personal Retirement Savings Account (PRSA)
- Retirement Annuity Contract (RAC).
These amounts are deducted from your gross pay before your employer calculates your tax.
There is more information on gross pay and taxable pay in Chapter 3 of Employers Guide to PAYE
Next: What is a tax rate band?