Know Your Rights has been compiled by Kerry Citizens Information Service which provides a free and confidential service to the public…
Question: I’m a PAYE worker. What income tax will I pay in 2018?
Answer: Changes to income tax bands were announced as part of Budget 2018. The amount of tax that you have to pay depends on your personal circumstances.
Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income.
The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band.
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The remainder of your income is taxed at the higher rate of tax, which is 40%. The amount that you can earn before you start to pay the higher rate of tax is known as your standard rate cut-off point.
For 2018 the standard rate of tax remains at 20%, but the standard rate tax bands have been increased as follows:
There is a range of income tax reliefs available, which can reduce the amount of tax that you have to pay. Further information is available from the Citizens Information Service below.
• Contact us in Tralee on Tel: 0761 07 7860 Killarney 0761 07 7820, Listowel 0761 07 7840 Kenmare 0761 07 7810, Killorglin 0761 07830 & Caherciveen 0761 07 7780.
Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0761 07 4000