Exemption and marginal relief
How to calculate your total income
Your total income is your gross income from all sources less certain deductions, such as expenses, allowances and reliefs.
If you are married or in a civil partnership and jointly assessed, your spouse's or civil partner's income is included in total income.
If you earn deposit interest or dividend income, you must use the gross figures when calculating total income.
If the total income received by is less than the exemption limit, you will not pay any Income Tax (IT).
John and Alice are 68 and 70 and earned income from the following sources in 2023:
|Deposit interest income received (net amount)
|Dividend income received (net amount)
Their total income is calculated:
John and Alice's total income
|Deposit Interest Income (gross)
(€1,950 is 67%)
|(€1,950 ÷ 67) x 100
|Dividend income (gross)
(€4,000 is 75%)
|(€4,000 ÷ 75) x 100
As John and Alice are both 65 or over and their total income for the period is under the exemption limit of €36,000, they are exempt for IT for 2023.
Both John and Alice may also be subject to the Universal Social Charge (USC) which is calculated separately from IT.
In this example Alice has not applied for her DIRT exemption from her Financial Institution. For details on how to claim this exemption see Deposit Interest Retention Tax (DIRT) Exemption.
Next: Marginal relief