The new income levy came into effect in Ireland on 1 January 2009 and is payable on gross income. Updated – See Income Levy 2010 Rates Here
The rate of the levy when introduced was 1% on income up to €100,100 pa; 2% on income between €100,101 and €250,120 pa; 3% on income in excess of €250,120 pa.
You will pay the income levy unless:
- Your income is less than €18,304 a year
- You are aged over 65 and your annual income is less than €20,000 for a single individual or €40,000 for a married couple You have a medical card
Certain income is exempt from the income levy:
- all social welfare payments, including social welfare payments received from abroad
- payments that are made in lieu of social welfare payments such as Community Employment Schemes or Back to Education Allowance
- income subjected to DIRT
Employers are responsible for deducting the income levy from their employees’ salaries.
Self-employed individuals will make a payment of income levy along with their preliminary tax payment, and any balance will be collected when the final assessment issues.