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Calculating your Income Tax

  1. Overview
  2. What is 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 is a tax rate band?

Your income up to a certain limit (a ‘rate band’) is taxed at the standard rate of Income Tax (IT) which is currently 20%. Any income above this limit is taxed at the higher rate of IT which is currently 40%.

You can find your rate band, for the current tax year and the previous four years, in the Tax rates, bands and reliefs charts.

  • Example

    In 2016 Ann has a weekly rate band of €650 and she earns €750 per week. This means that the first €650 of Ann’s wages is taxed at the standard rate of 20 per cent and the balance of €100 (€750 - €650) is taxed at the higher rate of 40 per cent.

Next: What is an increased rate band?

Published: 02 August 2018 Print this page

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