Jennifer and Martin are married and have chosen separate treatment.
In 2022 Jennifer’s total income is her employment income of €47,000. Her husband Martin has investment income of €26,000.
Their income tax is calculated as if they were single people.
Jennifer’s 2022 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,700 |
Employee PAYE Tax Credit |
€1,700 |
Total |
€3,400 |
Martin’s 2022 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,700 |
Total |
€1,700 |
Jennifer's 2022 Income Tax liability
|
Values | Amounts |
Total income |
|
€47,000 |
Income taxed @ 20% |
€36,800 |
€7,360 |
Income taxed @ 40% |
€10,200 |
€4,080 |
Total Income Tax |
|
€11,440 |
Less credits |
|
€3,400 |
Tax payable |
|
€8,040 |
Martin’s 2022 Income tax liability
|
Values | Amounts |
Total income |
|
€26,000 |
Income taxed @ 20% |
€26,000 |
€5,200 |
Total Income Tax |
|
€5,200 |
Less credits |
|
€1,700 |
Tax payable |
|
€3,500 |
Between them they will pay €11,540 (€8,040 + €3,500) Income Tax.