Jennifer and Martin are married and have chosen separate treatment.
In 2023 Jennifer’s total income is her employment income of €50,200. Her husband Martin has investment income of €29,200.
Their income tax is calculated as if they were single people.
Jennifer’s 2023 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,775 |
Employee PAYE Tax Credit |
€1,775 |
Total |
€3,550 |
Martin’s 2023 Tax Credits
Credits | Amounts |
Single Person Tax Credit |
€1,775 |
Total |
€1,775 |
Jennifer's 2023 Income Tax liability
|
Values | Amounts |
Total income |
|
€50,200 |
Income taxed @ 20% |
€40,000 |
€8,000 |
Income taxed @ 40% |
€10,200 |
€4,080 |
Total Income Tax |
|
€12,080 |
Less credits |
|
€3,550 |
Tax payable |
|
€8,530 |
Martin’s 2023 Income tax liability
|
Values | Amounts |
Total income |
|
€32,200 |
Income taxed @ 20% |
€32,200 |
€6,440 |
Total Income Tax |
|
€6,440 |
Less credits |
|
€1,775 |
Tax payable |
|
€4,665 |
Between them they will pay €13,195 (€8,530 + €4,665) Income Tax.