Pearse Doherty
Question:119. Deputy Pearse Doherty asked the Minister for Finance the current marginal rate of tax on income earned of more than €100,000 per annum; and the way this rate compares internationally. [40474/12]
View answerTuesday, 25 September 2012
Questions (119)
Written answers
As the Deputy is aware, the marginal tax rate is described as the tax rate that applies to the last euro of the tax base. The current marginal tax rate on income earned over €100,000 for full PRSI employees is 52% and for self assessed income is 55%. The components of the marginal tax rate are provided in table below:
|
Marginal tax rate components |
PAYE employee full PRSI earning > €100,000 |
Self assessed income > €100,000 |
|
Income Tax |
41% |
41% |
|
PRSI |
4% |
4% |
|
Universal Social Charge |
7% |
10% |
|
52% |
55% |
The Deputy may wish to note that the OECD is the best source availability for the purposes of international comparisons. It publishes statistics on the “Taxation of Wage Income” which includes an international comparison of the top marginal tax rates which can be found on their website using the following link: http://www.oecd.org/tax/taxpolicyanalysis/2506453.xls
The OECD also has statistics available on their website on top marginal tax rates in respect of 2011 and previous years. These represent the marginal tax rates that are applicable on the average wage in OECD countries. Ireland is ranked joint 10th highest top marginal tax rate at this level of income. International comparison of top marginal tax rates at other income levels is not available on the OECD’s website.