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Marriage and civil partnerships

  1. Overview
  2. Taxation after marriage or registration of civil partnership
  3. Joint assessment
  4. Separate assessment
  5. Separate treatment
  6. How your partner's residence affects your tax
  7. Effect on credits, reliefs and thresholds
  8. Transferring assets between spouses or civil partners

How your partner's residence affects your tax

If you are resident in Ireland, and your spouse or civil partner is not, you will be taxed as a single person. You can claim the:

You may both be non-resident, but one of you has an Irish income and pays Irish tax (for example a cross-border worker). Your income will be taxed in the same way as if only one partner is resident. You may be able to claim full or a portion of tax credits, depending on the rules for Tax credits for non-residents.

Relief available to resident spouse or civil partner

If your non-resident spouse or civil partner has no income, you can claim the:

This is known as ‘aggregation relief’. You can claim aggregation relief after the end of the tax year. You make the claim by filing a return of income which includes a declaration about your spouse’s or civil partner’s income.

Non-resident spouse or civil partner has an income

You may be able to claim a portion of this relief if your non-resident spouse or civil partner has an income.

The tax you are due to pay as an individual, might be greater than if you were taxed under joint assessment. If it is, you may claim relief.

The portion of relief you receive is based on the proportion your Irish income is of your total income.

  • Example

    In 2023, Peter has income of €50,200 from an Irish employment. Peter’s spouse, Rachel, is non-resident and has foreign investment income of €13,200.

    As a single person he has a standard rate band of €40,000.

    Peter’s 2023 Tax Credits
    CreditsAmount
    Single Person Tax Credit €1,775
    Employee PAYE Tax Credit €1,775
    Total €3,550
    Peter’s 2023 Income Tax liability as a single person
     Description ValuesAmount
    Total income   €50,200
    Income taxed @ 20% €40,000 €8,000
    Income taxed @ 40% €10,200 €4,080
    Total Income Tax  

    €12,080
    Deduct credits   €3,550
    Tax payable   €8,530

    After 31 December, Peter decides to review his affairs. He checks how much income tax he might be due to pay if he was taxed under joint assessment in Ireland.

    As he is the assessable spouse he has a the married couple's standard rate band of €49,000. Because both Peter and Rachel have taxable income, they are due the increased rate band. It is increased by Rachel's income of €13,200, to €62,200.

    Peter and Rachel's 2023 Tax Credits
    CreditsAmount
    Married Person or Civil Partner Tax Credit €3,550
    Employee PAYE Tax Credit €1,775
    Total €5,325
    Peter and Rachel's 2023 Income Tax liability
     Description ValuesAmounts
    Total income   €63,400
    Income taxed @ 20% €62,200 €12,440
    Income taxed @ 40% €1,200 €480
    Total Income Tax  

    €12,920
    Deduct credits   €5,325
    Tax payable   €7,595

    Peter is due to pay more Income Tax when taxed as a single person (€8,530), than if he were taxed under joint assessment (€7,595).

    Peter can make a claim for aggregation relief. He will receive a portion of the relief because his spouse has an income. He will receive a portion of 79%, as the proportion of Irish income earned is 79% of the total income. (€50,200 of €63,400 = 79%).

    Calculation of relief
     Description CalculationAmount
    Tax payable if jointly assessed   €7,595
    Proportional relief (79%) €7,595 x 0.79

    €6,014
    Relief due

    €8,530 - €6,014

    		 €2,302

    Peter is due a tax refund of €2,302 under aggregation relief.

    He can make the claim by filing an Income Tax Return (Form 12) which includes a declaration about Rachel’s income.

Next: Effect on credits, reliefs and thresholds

Published: 08 March 2023 Print this page

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