Married One Income vs Married Two Incomes?

Can someone please verify if my calculations below are correct? For dual incomes should the same overall income not result in the same tax?

1) Married couple with one income of €70,000, jointly assessed would give an income after tax of €52,877.

2) Married couple with two incomes, €69,000 and €1,000, jointly assessed would give an income after tax of €53,100.

3) Married couple with two incomes, €65,000 and €5,000, jointly assessed would give an income after tax of €55,042.

4) Married couple with two incomes, €60,000 and €10,000, jointly assessed would give an income after tax of €57,039.

5) Married couple with two incomes, €35,000 and €35,000, jointly assessed would give an income after tax of €59,648.

6) Married couple with two incomes, €44,000 and €26,000, jointly assessed would give an income after tax of €60,168.

Re: Married One Income vs Married Two Incomes??

antomack said:

Can someone please verify if my calculations below are correct? For dual incomes should the same overall income not result in the same tax?

Click to expand...

I can't confirm those precise calculations, but the answer to your second question is no. Since individualisation was introduced in Budget 2007, single-income couples with children pay up to €6,240 more in tax each year than dual-income couples on the same income, according to a report from the Iona Institute (available [broken link removed] in .pdf format).

There have been several discussions here on the merits/demerits of tax individualisation which you should be able to find by using the search function.

Re: Married One Income vs Married Two Incomes??

Married couple with one income of up to 70,000. 20% tax rate only applies to the first €44,400. Only one Paye credit for the person working and married persons tax credit. Married couple with both earning highest earner pay tax at 20% up to €44400 and other pay tax at 20% on income up to €26,400. Anything over these taxed at 41%. Check up revenue site. Also PAYE credit limited to 20% of earnings up to the max of the PAYE credit of €1830 if income low. Haven't got time to check calulations.

Re: Married One Income vs Married Two Incomes??

Anything here Figures used are those for 2006 but the principal is the same

You can enter details here and see what you get

Just use www.taxcalc.eu to estimate the tax bills for the various scenarios outlined in the original post.