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Calculating your Income Tax

  1. Overview
  2. What are gross pay and taxable pay?
  3. What are tax credits?
  4. What is a tax rate band?
  5. What is an increased rate band?
  6. What is a Tax Credit Certificate?
  7. How your Income Tax is calculated
  8. View your pay and tax details

What are gross pay and taxable pay?

Gross pay

Gross pay is the employee’s pay of any kind, including:

  • notional pay
  • share based remuneration
  • the employees pay before any pension contributions or salary sacrifice deductions are made.

Chapter 3 of the Employers Guide to PAYE details the different types of pay that would be included.

Taxable pay

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.

Next: What are tax credits?

Published: 08 June 2020 Print this page

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