Know your rights: Income tax bands and rates

Question

What are the income tax bands and tax rates for 2015?

Answer

The income tax bands and tax rates for 2015 were announced in Budget 2015.

Nearly all income is liable to tax. The amount of tax that you have to pay depends on your personal circumstances. There is a range of income tax reliefs available that can reduce the amount of tax that you have to pay.

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 what is known as the standard rate of tax. The amount that it applies to is known as the standard-rate tax band. The remainder of your income is taxed at a higher rate of tax.

For 2015 the standard rate of tax remains at 20% but the standard-rate tax bands have been increased as follows:

2014
2015
Single person
€32,800
€33,800
Married couple/civil partners, one income
€41,800
€42,800
Married couple/civil partners, two incomes
€41,800 (1st income)
€23,800 (2nd income)
€42,800 (1st income)
€24,800 (2nd income)
One parent family
€36,800
€37,800

The higher rate of tax that applies to the balance of your income has been reduced from 41% in 2014 to 40% for 2015.

Know Your Rights columns cover topical subjects every month in a question-and-answer format. They are published by the Citizens Information Board online and syndicated through Citizens Information Services to local newspapers around Ireland.

Further information is available from Citizens Information Centres and from the Citizens Information Phone Service, call 0761 07 4000.

Local Property Tax – deadline tomorrow

If you want to pay your LPT for 2015 in one lump sum you must confirm your payment method to Revenue by Wednesday 7 January 2015.

If you pay with debit or credit card, cheque, postal order or cash the payment will be debited immediately. If you choose to pay by single debit authority the payment will be debited on 21 March 2015.

You can read more in our document about ‘Paying the Local Property Tax’.

New Back to Work Family Dividend scheme

The Back to Work Family Dividend scheme was announced in Budget 2015.

The scheme aims to help families to move from social welfare into employment. It will give a weekly payment for up to 2 years to people with children who were getting jobseeker and one-parent family payments who take up employment, increase their hours of employment or become self-employed.

The scheme will start in April 2015 but applications can be accepted from Monday 5 January 2015. Payments will be made in April when the scheme legislation is in place and eligible claims will be backdated where the application was made between 5 January and the date the scheme is fully operational.

Find out more about the scheme on citizensinformation.ie and download the application form (pdf) from welfare.ie.

Ban on smoking in cars with children

A ban on smoking in cars when children are present will come into force from today, Friday 1 January 2016.

From that date it will be an offence for anyone to smoke a tobacco product in a vehicle where a child is present, or to allow someone else to smoke in the vehicle. The offence will be enforced by the Gardaí and carries a fixed penalty of €100 with the option of tougher penalties of up to €1,000 for failing to stop or providing inaccurate details.

Find out more about the ban.