# What is the Effective Tax Rate in Ireland?



## Brendan Burgess (8 Aug 2022)

The Irish Fiscal Advisory Council has a report the strength of Income Tax receipts 



			https://www.fiscalcouncil.ie/wp-content/uploads/2022/07/AN16_A_bottom-up_sectoral_assessment_of_the_strength_of_income_tax_receipts.pdf
		







It seems to exclude PRSI which would add another 4% to it. 

Brendan


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## Brendan Burgess (8 Aug 2022)

Revenue breaks down the tax by income cohort 






						Income Tax breakdown by Gross Income
					






					www.revenue.ie
				








If I read this correctly

People earning between 27k and 30k  pay 224m tax on €3.8 billion of income or 6%

People earning between €150k and €200k pay €1.6 billion on €5.8 billion of income or 28%

Brendan


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## Firefly (8 Aug 2022)

50% of total income tax is paid by the 6.5% of taxpayer units who earn more than 100,000


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## Bow tie (8 Aug 2022)

Is a tax paying unit always 1 person, or a jointly assessed unit also?


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## Nicklesilver (8 Aug 2022)

Does tax include USC/PRSI


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## jpd (8 Aug 2022)

A tax paying unit is exactly what it says - jointly assessed couples are 1 unit

Tax usually includes USC and not PRSI - USC is a tax on income, PRSI is Pay Related Social Insurance charge and is not considered as an income tax (go figure!)

It is a lot lower in Ireland than in most advanced EU countries


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## Nicklesilver (8 Aug 2022)

It looks like income tax is reliant on a pretty small number of people, just like the corporation tax!
if a new government increases these taxes by phasing out tax allowances for incomes over 100k and a new higher rate over 140k it will be increasingly difficult to keep very high skilled mobile workers in the country


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## Sophrosyne (8 Aug 2022)

To see the USC & income tax dataset you select this.
Then select the 3rd row down.


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## NoRegretsCoyote (8 Aug 2022)

Firefly said:


> 50% of total income tax is paid by the 6.5% of taxpayer units who earn more than 100,000


This excludes PRSI which is paid by nearly every employee.

I wish the Revenue statistics would allow comparisons including PRSI.


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## jpd (8 Aug 2022)

That would violate the "PRSI is not a tax" rule


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## ryaner (8 Aug 2022)

Nicklesilver said:


> It looks like income tax is reliant on a pretty small number of people, just like the corporation tax!
> if a new government increases these taxes by phasing out tax allowances for incomes over 100k and a new higher rate over 140k it will be increasingly difficult to keep very high skilled mobile workers in the country


It is already difficult to keep them, and nearly impossible to get people to come over after they start looking at costs after tax.


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## Purple (9 Aug 2022)

NoRegretsCoyote said:


> This excludes PRSI which is paid by nearly every employee.


There's no PRSI on the first €18k of income.


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## Itchy (11 Aug 2022)

Brendan Burgess said:


> Revenue breaks down the tax by income cohort
> 
> 
> 
> ...



On the P21 Balancing Statement, Panel 8 (I think) quotes the 'Effective Irish Tax Rate'. Ours would seem to tie in with that figure, more or less (2 PAYE employees with PHI relief and max pension/AVC contributions for our age, no other reliefs). Though I can't seem to determine from the statement how exactly they calculated that. And it looks like PRSI is not included as you noted.


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