Tuesday 16 January 2018

Fall off in top- rate taxpayers

Louise McBride

Louise McBride

The number of taxpayers paying the higher rate of income tax is almost half what it was in 2005 -- a stark reminder of the toll the recession has taken on our pay packets.

If you're single and have no children, you must earn €32,800 before the higher rate of income tax kicks in today. This is a few grand more than the amount you could earn in 2005 before paying the higher rate of tax.

However, in 2005, almost 750,000 people were paying the higher rate of income tax -- today, only 392,500 people are, according to the latest figures from the Department of Finance.

The bulk of Irish taxpayers are either paying no tax or are paying the lower rate of tax. This means that about 1.8 million workers are earning less than €32,800 -- which is below the average wage of €35,127.

Let's hope 2014 is the year of pay raises.

Irish Independent

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