Income tax on my pension

F

fred123456

Registered User
Messages
51
Hi,

Probably a silly question and answered a thousand times, apologies upfront.

I am trying to think about take home pay from a basic pension and tax implications.

If at retirement in a couple of years 66 my retirement from single pension is 14,000 and state pension is 14,000(worked private sector 22 years) and my wife is 14,000 state pension + defined benefit scheme 7,000 + 6,000 single pension scheme(worked in private sector also.

so in total pension might be around
55,000. Am i right in saying the first 36000 is tax free and everything after that you pay 40% tax on and USC of roughly 4%. Are their reliefs i can avail of. Two children but hopefully not dependent.

I am trying to work my weekly, monthly income in retirement.

Any help much appreciated

fred.
 
No, income tax doesn't work like that

As a married couple you are allowed up to € 51,000 at standard rate and your wife is allowed up to € 33,000 at standard rate so all of your income will be taxed at standard rate

Total Income
€ 55,000​
Taxed due at standard rate 20%
€ 11,000​
Married couple tax credit
- € 3,550​
Age tax credit
-€ 490​
Employee tax credit x 2
-€ 3,550​
Tax due
€ 3,410​

So you annual after tax income will be around € 51,590 or € 1,000 per week or € 4,300 per month
 
You should read how income tax works on the Revenue website

www.revenue.ie

The € 36,000 is the tax exempt amount for low income couple's - you don't qualify for that
 
I use this type of calculator to do basic estimates of nett income. As I’m not yet aged 66 I have to manually adjust PRSI for certain income types but I don’t think that affects the OP.

Income Tax Calculator | Deloitte Ireland

Use Deloitte’s income tax calculator to estimate your net income based on the provisions announced in the latest budget.
services.deloitte.ie services.deloitte.ie
 
You must log in or register to reply here.
Back
Top