Dáil Éireann Debate, Thursday - 5 October 2006
92 Mr. P. McGrath asked the Minister for Finance the amount of income tax and PRSI payable by a single PAYE worker in each of the past five years where gross income in each year was €30,000, €40,000, €50,000, €60,000, €70,000, €80,000 and €100,000 assuming only personal and PRSI allowances are applicable. [31368/06]
View answerI set out below the following table.
|
Income (€) |
Year |
2002 |
2003 |
2004 |
2005 |
2006 |
|
€ |
€ |
€ |
€ |
€ |
||
|
30,000 |
Income Tax |
4,260 |
4,120 |
3,880 |
3,282 |
2,880 |
|
PRSI |
936 |
936 |
936 |
936 |
936 |
|
|
40,000 |
Income Tax |
8,460 |
8,320 |
8,080 |
7,482 |
6,640 |
|
PRSI |
1,291 |
1,336 |
1,336 |
1,336 |
1,336 |
|
|
50,000 |
Income Tax |
12,660 |
12,520 |
12,280 |
11,682 |
10,840 |
|
PRSI |
1,341 |
1,402 |
1,463 |
1,534 |
1,615 |
|
|
60,000 |
Income Tax |
16,860 |
16,720 |
16,480 |
15,882 |
15,040 |
|
PRSI |
1,377 |
1,438 |
1,498 |
1,569 |
1,656 |
|
|
70,000 |
Income Tax |
21,060 |
20,920 |
20,680 |
20,082 |
19,240 |
|
PRSI |
1,402 |
1,463 |
1,524 |
1,600 |
1,686 |
|
|
80,000 |
Income Tax |
25,260 |
25,120 |
24,880 |
24,282 |
23,440 |
|
PRSI |
1,418 |
1,480 |
1,544 |
1,620 |
1,707 |
|
|
100,000 |
Income Tax |
33,660 |
33,520 |
33,280 |
32,682 |
31,840 |
|
PRSI |
1,443 |
1,509 |
1,575 |
1,650 |
1,737 |
(Rounded to the nearest Euro)
*Assumes that the single person receives the personal allowance or personal credit and the PAYE allowance or Employee credit, as appropriate, in the year in question.
** Assumes the person is insured under Class A (full rate) PRSI and that the individual's salary does not fluctuate from week to week over the course of the given year. The calculations do not include the Health Levy contribution of 2% applicable to all income over the threshold of €18,512 per annum for the tax years' 2002-2004, €20,800 per annum for the tax year 2005 and €22,880 for the tax year 2006.
93 Mr. P. McGrath asked the Minister for Finance the amount of income tax paid by a double income family with a gross pay of €64,000 and a single income family with a total gross pay of €64,000 and to compare this to the amount of income tax paid by a single income family with gross pay of €64,000. [31369/06]
View answerThe position is that the tax rates and bands for a married couple for 2006 are as follows:
Married couple (one spouse with income) First €41,000 @ 20%
Balance @ 42%.
Married couple (both spouses with income) First €41,000 with increase of €23,000 maximum @ 20%
Balance @ 42%.
In the case of married couples with two incomes, the standard rate band available to one spouse will not be greater than that available to a one income married couple i.e. €41,000. The second spouse may avail of the balance of the €64,000 band.
A Home Carer Tax Credit of €770 can be claimed by married persons who are jointly assessed to tax and where one spouse works at home to care for a dependent person (which includes a dependent child) provided certain conditions are satisfied. A married couple cannot claim both the Home Carer Tax Credit and the increased standard rate band. They can, however, claim whichever of the two is the most beneficial. The Home Carer Tax Credit is not due where the home caring spouse's income equals or exceeds €6,620.
The following eight examples show the income tax payable by single and double income families as requested by the Deputy on gross incomes of €64,000 and €64,000 for the current tax year. The examples refer to earners in the PAYE and self-employed sectors and are based on the assumption in each case that the married couple is jointly assessed for tax purposes.
Example 1
In this example it is assumed that the individual is in the PAYE system.
|
Gross Income |
€64,000 |
|
Band Available |
€41,000 |
|
Band Utilised |
€41,000 |
|
Tax |
€41,000 @ 20% = €8,200 |
|
€23,000 @ 42% = €9,660 |
|
|
Gross Tax Due |
€17,860 |
|
Less Tax Credits |
|
|
Personal Credit |
(€3,260) |
|
Employee Credit |
(€1,490) |
|
= Total Credits |
(€4,750) |
|
Net Tax Due |
€13,110 |
Example 2
In this example it assumes that both spouses are working in the PAYE sector.
|
Joint Income |
€64,000 |
|
|
Spouses Income |
€32,000 |
€32,000 |
|
Band Available |
€32,000 |
€32,000 |
|
Band Utilised |
€32,000 |
€32,000 |
|
Tax liability |
€6,400 (€32,000 @20%) |
€6,400 (€32,000 @20%) |
|
Gross Tax Due |
€12,800 |
|
|
Less Tax Credits |
||
|
Personal Credit |
(€1,630) |
(€1,630) |
|
Employee Credit |
(€1,490) |
(€1,490) |
|
=total credits |
(€6,240) |
|
|
Net Tax Due |
€6,560 |
Example 3
In this example it is assumed that both spouses are in the PAYE system.
|
Joint Income |
€64,000 |
|
|
Spouses Income |
€41,000 |
€23,000 |
|
Band Available |
€41,000 |
€23,000 |
|
Band Utilised |
€41,000 |
€23,000 |
|
Tax Liability |
€8,200 (€41,000 @ 20%) |
€4,600 (€23,000 @ 20%) |
|
Gross Tax Due |
€12,800 |
|
|
Less Tax Credits |
||
|
Personal Credit |
(€1,630) |
(€1,630) |
|
Employee Credit |
(€1,490) |
(€1,490) |
|
= Total Credits |
(€6,240) |
|
|
Net Tax Due |
€6,560 |
Example 4
In this example it is assumed that the individual is in the PAYE system.
|
Gross Income |
€64,000 |
|
Band Available |
€41,000 |
|
Band Utilised |
€41,000 |
|
Tax |
€41,000 @ 20% = €8,200 |
|
€23,000 @ 42% = €9,660 |
|
|
Gross Tax Due |
€17,860 |
|
Less Tax Credits |
|
|
Personal Credit |
(€3,260) |
|
Employee Credit |
(€1,490) |
|
Home carers |
(€ 770) |
|
= Total Credits |
(€5,520) |
|
Net Tax Due |
€12,340 |
Example 5
In this example it is assumed that the earner is self-employed.
One Income Family with no dependent children.
|
Gross Income |
€64,000 |
|
Band Available |
€41,000 |
|
Band Utilised |
€41,000 |
|
Tax |
€41,000 @ 20% = €8,200 |
|
€23,000 @ 42% = €9,660 |
|
|
Gross Tax Due |
€17,860 |
|
Less Tax Credits |
|
|
Personal Credit |
(€3,260) |
|
Net Tax Due |
€14,600 |
Example 6
In this example it is assumed that each spouse is self-employed.
|
Joint Income |
€64,000 |
|
|
Spouses Income |
€32,000 |
€32,000 |
|
Band Available |
€32,000 |
€32,000 |
|
Band Utilised |
€32,000 |
€32,000 |
|
Tax liability |
€6,400 (€32,000 @20%) |
€6,400 (€32,000 @20%) |
|
Gross Tax Due |
€12,800 |
|
|
Less Tax Credits |
||
|
Personal Credit |
(€1,630) |
(€1,630) |
|
= total credits |
(€3,260) |
|
|
Net Tax Due |
€9,540 |
Example 7
In this example it is assumed that both spouses are self-employed.
|
Joint Income |
€64,000 |
|
|
Spouses Income |
€41,000 |
€23,000 |
|
Band Available |
€41,000 |
€23,000 |
|
Band Utilised |
€41,000 |
€23,000 |
|
Tax Liability |
€8,200 (€41,000 @ 20%) |
€4,600 (€23,000 @ 20%) |
|
Gross Tax Due |
€12,800 |
|
|
Less Tax Credits |
||
|
Personal Credit |
(€1,630) |
|
|
= Total Credits |
(€3,260) |
|
|
Net Tax Due |
€9,540 |
Example 8
In this example it is assumed that the earner is self-employed.
|
Gross Income |
€64,000 |
|
Band Available |
€41,000 |
|
Band Utilised |
€41,000 |
|
Tax |
€41,000 @ 20% = €8,200 |
|
€23,000 @ 42% = €9,660 |
|
|
Gross Tax Due |
€17,860 |
|
Less Tax Credits |
|
|
Personal Credit |
(€3,260) |
|
Home carers |
(€ 770) |
|
= Total Credits |
€4,030 |
|
Net Tax Due |
€13,830 |
94 Mr. P. McGrath asked the Minister for Finance the number of taxpayers in the PAYE sector and self-employed who availed, per annum of the homecaring spouse tax allowance since this tax relief was first introduced. [31370/06]
View answerI am informed by the Revenue Commissioners that the latest available information in respect of taxpayers availing of the home carer's tax credit is for the income tax year 2003. The potential numbers of claimants are provisionally estimated for later years.
Numbers of taxpayers availing of the home carer's tax credit, formerly an allowance, but converted to a tax credit in 2001, are as follows:
|
Tax Year |
2000/01 |
2001 |
2002 |
2003 |
2004 |
2005 |
|
Numbers availing |
2,600 |
87,900 |
1,950 |
80,700 |
72,000 |
69,300 |
|
Tax Year |
2000/01 |
2001 |
2002 |
2003 |
2004 |
2005 |
|
Numbers availing |
18,650 |
20,150 |
18,900 |
18,500 |
21,100 |
20,700 |
Figures for years 2004 and 2005 are provisional and subject to revision. This may result in increased figures of PAYE claimants.
The numbers availing represent income earners who were in a position to absorb at least some of the home carer's tax credit and thereby give rise to an Exchequer cost. They do not include the numbers of potential claimants whose entitlements to other tax credits were sufficient to reduce their liability to tax to nil without reference to the home carer's credit. The numbers availing of the credit are rounded to the nearest hundred as appropriate. A married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
