John and Alice are 68 and 70 and earned income from the following sources in 2025:
John's income
| Description | Value |
|---|
| PAYE income |
€15,000 |
| Deposit interest income received (net amount) |
€1,950 |
Alice's income
| Description | Value |
|---|
| Rental profit |
€10,000 |
| Dividend income received (net amount) |
€4,000 |
Their total income is calculated:
John and Alice's total income
| Description | Calculation | Value |
|---|
| PAYE income |
|
€15,000 |
| Rental profit |
|
€10,000 |
Deposit Interest Income (gross)
(€1,950 is 67%) |
(€1,950 ÷ 67) × 100 |
€2,910 |
Dividend income (gross)
(€4,000 is 75%) |
(€4,000 ÷ 75) × 100 |
€5,333 |
| Total income |
|
€33,243 |
As at least one of John and Alice are aged 65 or over and their total income for the period is under the exemption limit of €36,000, their income is exempt from Income Tax for 2025.
This exemption applies to Income Tax only. Even though John is aged between 66 and 70, as he would have reached 66 years of age by 1 January 2024, he will not have to to pay PRSI on his income. Please see Changes to Pay Related Social Insurance (PRSI) for more information on this.
Both John and Alice may also be subject to the Universal Social Charge (USC) which is calculated separately from Income Tax.