New Income Levy from January 2009

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.