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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

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: 25 June 2019 Print this page

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