Calculating your Income Tax

What is an increased rate band?

In 2021 the standard (20%) rate band for couples in a marriage or civil partnership is €44,300. If both people are working it is increased by the lower amount of either:

  • €26,300
  • or
  • the income of the lower earner.

This means that the maximum standard rate band a couple can have is €70,600 (€44,300 + €26,300). It is not possible for one person to use the full amount of €70,600. An individual can have no more than €44,300 unless they have additional reliefs such as Personal Retirement Savings Account or Flat Rate Expenses. 


The increase in the standard rate band is not allowable where a couple are claiming the Home Carer Tax Credit.

Next: What is a Tax Credit Certificate?