Dáil Éireann Debate, Thursday - 15 December 2005
185 Ms Shortall asked the Minister for Finance the breakdown of tax credits and income tax bill that will apply in 2006 to employees in respect of persons (details supplied), without reference to PRSI, health levies or tax credits other than single, married and employee credits. [39815/05]
Amharc ar fhreagraThe following examples show the tax credits and bands available in 2006 in the cases outlined by the Deputy. The examples refer to earners in the PAYE sector and are based on the assumption in each case that the married couple is jointly assessed for tax purposes.
Example 1
Single Person
Gross Income €26,000
Band Available €32,000
Band Utilised €26,000
Tax€26,000 @ 20% = €5,200
Gross Tax Due €5,200
Less Tax Credits Personal Credit(€1,630)
Employee Credit(€1,490)
= Total Credits (€3,120)
Net Tax Payable (€2,080)
Example 2
One Income Family
Gross Income €39,000
Band Available €41,000
Band Utilised €39,000
Tax€39,000 @ 20% = €7,800
Gross Tax Due €7,800
Less Tax Credits Married Credit(€3,260)
Employee Credit(€1,490)
= Total Credits (€4,750)
Net Tax Payable (€3,050)
Example 3
Two Income Family and income split between spouses
€35,000: €22,000
Joint Income €57,000
Spouses' Income €35,000
€22,000
Band Available €41,000
€23,000
Band Utilised €35,000
€22,000
Tax€7,000 (35,000 @ 20%)
€4,400 (22,000 @ 20%)
Gross Tax Due €11,400
Less Tax Credits
Personal Credit(€1,630)
(€1,630)
Employee Credit(€1,490)
(€1,490)
= Total Credits (6,240)
Net Tax Payable(5,160)
