The follow is a list of Tax Credits, Reliefs and Rates for the Tax Years 2010 and 2011 taken from www.revenue.ie
- Personal Tax Credits
- Exemption Limits
- Tax Rates and Tax Bands
- Income Levy – 2010
- Rent-a-Room Relief
- Childcare Services
- Rent Relief for Private Rented Accommodation
- Tax Relief for Loan Interest (Secured and Unsecured)
- Amount of Relief Available
- Medical Insurance Premiums
- Revenue Job Assist
- Revenue Approved Permanent Health Benefit Schemes
- Tax Relief on Service Charges
- Home Carer’s Tax Credit
- Trade Union Subscriptions
- Health / Medical Expenses Relief
- Tuition Fees
- Tax Relief Available to Systematic Short-time Workers
- PRSI – Employers/Employees
- PRSI – Self-Employed
- Universal Social Charge
- Further Information
- PAYE Anytime
Personal Tax Credits
The following chart gives details of the main personal tax credits for the tax years 2010 and 2011
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single Person | €1,830 | €1,650 |
| Married Person | €3,660 | €3,300 |
| Widowed Person qualifying for One Parent Family Tax Credit | €1,830 | €1,650 |
| Widowed Person without dependent children | €2,430 | €2,190 |
| Widowed Person in year of bereavement | €3,660 | €3,300 |
| One-Parent Family, Widowed, Deserted, Separated or Unmarried (with qualifying dependent children, see note 1) | €1,830 | €1,650 |
| Widowed Parent Bereaved in 2010 | — | €3,600 |
| Widowed Parent Bereaved in 2009 | €4,000 | €3,150 |
| Widowed Parent Bereaved in 2008 | €3,500 | €2,700 |
| Widowed Parent Bereaved in 2007 | €3,000 | €2,250 |
| Widowed Parent Bereaved in 2006 | €2,500 | €1,800 |
| Widowed Parent Bereaved in 2005 | €2,000 | — |
| Home Carer (max.) | €900 | €810 |
| PAYE Tax Credit | €1,830 | €1,650 |
| Age Tax Credit if Single/Widowed | €325 | €245 |
| Age Tax Credit if Married | €650 | €490 |
| Incapacitated Child (See note 1) | €3,660 | €3,300 |
| Dependent Relative (See note 1) | €80 | €70 |
| Blind Tax Credit – Single | €1,830 | €1,650 |
| Blind Tax Credit – One Spouse Blind | €1,830 | €1,650 |
| Blind Tax Credit – Both Spouses Blind | €3,660 | €3,300 |
| Incapacitated Person – Allowance for Employing a Carer | €50,000*max | €50,000*max |
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single Person | €1,830 | €1,650 |
| Married Person | €3,660 | €3,300 |
| Widowed Person qualifying for One Parent Family Tax Credit | €1,830 | €1,650 |
| Widowed Person without dependent children | €2,430 | €2,190 |
| Widowed Person in year of bereavement | €3,660 | €3,300 |
| One-Parent Family, Widowed, Deserted, Separated or Unmarried (with qualifying dependent children, see note 1) | €1,830 | €1,650 |
| Widowed Parent Bereaved in 2010 | — | €3,600 |
| Widowed Parent Bereaved in 2009 | €4,000 | €3,150 |
| Widowed Parent Bereaved in 2008 | €3,500 | €2,700 |
| Widowed Parent Bereaved in 2007 | €3,000 | €2,250 |
| Widowed Parent Bereaved in 2006 | €2,500 | €1,800 |
| Widowed Parent Bereaved in 2005 | €2,000 | — |
| Home Carer (max.) | €900 | €810 |
| PAYE Tax Credit | €1,830 | €1,650 |
| Age Tax Credit if Single/Widowed | €325 | €245 |
| Age Tax Credit if Married | €650 | €490 |
| Incapacitated Child (See note 1) | €3,660 | €3,300 |
| Dependent Relative (See note 1) | €80 | €70 |
| Blind Tax Credit – Single | €1,830 | €1,650 |
| Blind Tax Credit – One Spouse Blind | €1,830 | €1,650 |
| Blind Tax Credit – Both Spouses Blind | €3,660 | €3,300 |
| Incapacitated Person – Allowance for Employing a Carer | €50,000*max | €50,000*max |
* Relief in respect of the cost of maintaining a guide dog (max €825) may be claimed under the heading of Health Expenses.
** Relief for Employing a Carer (2010 and 2011) is allowable at the individual’s highest rate of tax, i.e. 20% or 41%.
Note 1
| The Child’s/Relative’s income limits | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| One Parent Family Tax Credit | 0 | 0 |
| Incapacitated Child Tax Credit | 0 | 0 |
| Dependent Relative Tax Credit | €13,837* | €13,837 |
* In the case of Dependent Relative Tax Credit, if the relative’s income exceeds the relevant limit no tax credit is due.
Exemption Limits
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single/ Widowed 65 years of age or over | €20,000 | €18,000 |
| Married 65 years of age or over | €40,000 | €36,000 |
| Single/Widowed/Married 65 years of age or over Additional for 1st and 2nd dependent child |
€575 | €575 |
| Single/Widowed/Married 65 years of age or over Additional for each subsequent dependent child |
€830 | €830 |
| Marginal Relief Tax Rate | 40%* | 40%* |
*The Marginal Relief Tax Rate only applies to persons 65 years of age or over.
Tax Rates and Tax Bands
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single / Widowed without dependent children | €36,400 @ 20%, Balance @ 41% | €32,800 @ 20%, Balance @ 41% |
| Single / Widowed qualifying for One Parent Family Tax Credit | €40,400 @ 20%, Balance @ 41% | €36,800 @ 20%, Balance @ 41% |
| Married Couple – one spouse with income | €45,400 @ 20%, Balance @ 41% | €41,800 @ 20%, Balance @ 41% |
| Married Couple – both spouses with income | €45,400 @ 20% (with an increase of €27,400 max), Balance @ 41% | €41,800 @ 20% (with an increase of €23,800 max), Balance @ 41% |
Note: The increase in the standard rate tax band is restricted to the lower of €27,400 in 2010 and €23,800 in 2011 or the amount of the income of the spouse with the lower income. The increase is not transferable between spouses.
Income Levy – 2010
2010
The Income Levy is payable on gross income from all sources before any tax reliefs, capital allowances, losses or pension contributions.
The 2010 annual rates and thresholds of the Income Levy are as follows:
| Income Levy Thresholds | Rate |
|---|---|
| Income up to €75,036 per annum | 2% |
| Income from between €75,037 to €174,980 per annum | 4% |
| Income above in excess of €174,980 per annum | 6% |
The following are exempt from the Income Levy:
- Individuals who hold full medical cards (A ‘GP only’ medical card is not a ‘full’ medical card)
- Individuals whose annual income does not exceed €15,028
- Individuals aged 65 or over whose annual income does not exceed €20,000
- Married couples, one or both of whom are aged 65 or over, whose combined income for the year does not exceed €40,000
All Social Welfare payments are also exempt from the Income Levy.
For the latest information on the Income Levy including Frequently Asked Questions and the Income Levy Certificate 2009 & 2010
Note: The Income Levy is abolished with with effect from 1 January 2011.
Rent-a-Room Relief
Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income, together with any sums received for the provision of meals or other services supplied in connection with the letting, may be exempt from income tax where the aggregate amount received in the year of assessment does not exceed the annual limit ( €10,000 for 2010 & 2011). Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected. For more information see Leaflet IT 70 – A Revenue Guide to Rental Income.
Childcare Services
Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000 in 2010 or 2011 the income is exempt from tax. The childcare service must be provided in the carer’s home, not the children’s home and no more than 3 children may be cared for at any time.
Rent Relief for Private Rented Accommodation
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single Under 55 max. | €2,000 | €1,600 |
| Single Over 55 max. | €4,000 | €3,200 |
| Widowed/ Married under 55 max. | €4,000 | €3,200 |
| Widowed/ Married over 55 max. | €8,000 | €6,400 |
Relief can be claimed by completing 
Form Rent 1 – Claim for Rent Relief on Private Rented Accommodation (PDF, 373KB)
Tax Relief for Loan Interest (Secured and Unsecured)
Tax Relief at Source (TRS) on Secured loans
Tax relief for home mortgage interest (secured loans) is not given through the tax system but is instead granted at source (TRS). Mortgage repayments are reduced by the amount of the tax credit due. For example, if the interest element of your mortgage repayment per month is say €500, your mortgage lender will reduce your monthly mortgage payment by €100 per month. This reduction is the same as giving tax relief at the standard rate of tax (20%).
Any future adjustments in your tax relief will be made automatically by your mortgage lender. It is not necessary to claim relief on your annual tax return or to contact your local Revenue office.
If, however, you are making mortgage repayments and not receiving Tax Relief at Source, you should contact TRS Section, Collector-General’s Division at LoCall 1890 46 36 26 who will arrange for the relief to come into effect. For further information see: Leaflet CG13 – Mortgage Interest Relief (Tax Relief at Source).
Unsecured Home Loans
Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed by review at the end of the tax year.
If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.
Amount of Relief Available
2009: From 1 January 2009, First-time buyers – the rate of mortgage interest relief is increased from 20% to 25% in years 1 and 2 and to 22.5% in years 3, 4 and 5. The relief remains unchanged at 20% for years 6 and 7 of the mortgage. First time buyers relief ends after year 7.
Non-first time buyers – the rate of mortgage relief is reduced from 20% to 15%.
2010: Qualifying loans taken out before 1 July 2011 will continue to get relief for 7 years. Transitional measures will be provided for qualifying loans taken out between 1 July 2011 and the end of 2012.
2011: Loans taken out from 1 January 2004 to 31 December 2011, subject to qualifying loan criteria, are eligible for TRS Mortgage interest relief until 31 December 2017.
Those whose entitlement to relief would, in the absence of this change, expire in 2010 or after, will continue to qualify for relief at the applicable rate up until the end of 2017.
The relief will be abolished completely by the end of 2017.
For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief.
| Personal Circumstances | First Time Buyers | All Others |
|---|---|---|
| Single | €10,000 | €3,000 |
| Married/Widowed | €20,000 | €6,000 |
Note: Amounts shown in the above table are the ceiling amounts for the years 2010 and 2011
Medical Insurance Premiums
Tax Relief at Source (TRS)
Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS). Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%).
Employees whose medical insurance premiums are paid on their behalf, by their employer, as a Benefit-in-Kind, will not have been allowed tax relief at source. To claim the relief due it will be necessary to notify your local Revenue Office by phone, email or in person with the relevant details or by completing your annual tax return.
Revenue Job Assist
Additional tax relief at the individual’s highest rate of tax, i.e. 20% or 41% in 2010 and 2011, is available for people who have been unemployed for one year or more and who take up a qualifying job. Relief in the first year of employment is €3,810 plus €1,270 for each child, reducing to two-thirds of that amount in Year 2 and one-third in Year 3. This relief is also available for persons who have been in receipt of either Disability Allowance, Blind Person’s Pension or Invalidity Pension for 12 months or more, Illness Benefit for 3 years or more or released after 12 months or more in prison. For more information see Leaflet IT 58 – Job Assist Information for Employees (PDF, 148KB).
Revenue Approved Permanent Health Benefit Schemes
Where an employer deducts the contributions from gross pay the tax relief is given at source. Therefore no further action is necessary to claim relief.
Where an employer does not deduct the contributions from gross pay relief can be claimed, by notifying your local Revenue office of the relevant details by phone, email or in person ( See Further Information) or by completing your annual tax return.
Tax Relief on Service Charges
Income tax relief is available for individuals who pay local authority and other service charges. Relief is given for service charges paid in full and on time in the previous calendar year. A maximum of €400 tax relief is granted (at the 20% rate) in 2011 for service charges paid in the year 2010. For more information see Leaflet IT 27 – Tax Relief for Service Charges (PDF, 1.1MB).
Home Carer’s Tax Credit
A tax credit at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for married couples where:
- One spouse (the ‘home carer’) works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to Social Welfare child benefit, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.
- The home carer’s income is not in excess of €5,080. A reduced tax credit applies where the income is between €5,080 and €6,880 in 2010 or between €5,080 and €6,700 in 2011.
The tax credit is not available to married couples that are taxed as single persons. Neither is the tax credit available to married couples with combined incomes over €45,400 in the tax years 2010 or €41,800 in 2011 and who claim the increased standard rate tax band for dual income couples. For more information and also to claim the relief due complete the application form in Leaflet IT 66 – Home Carer’s Tax Credit (PDF, 694KB) and send it to your local Revenue office. Alternatively, you can telephone your Regional LoCall number (see Further Information) with details of your claim.
Trade Union Subscriptions
An annual flat rate allowance of €350 at the standard rate of tax 20% (tax credit €70) is available for Trade Union subscriptions paid in 2010. The full allowance is available in 2010 regardless of the actual amount of the subscription paid. If you are/were a member of a Trade Union at any time during 2009 or 2010 and you have not been granted relief for subscriptions made, you can phone your Regional LoCall number.
Note: Tax relief for Trade Union subscriptions has been abolished with effect from 1 January 2011.
Health/Medical Expenses Relief
You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), from 1 January 2009 (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Hibernian Aviva Health, Quinn-healthcare, VHI, a Health Authority, or where a compensation payment is made or will be made.
For more information see Leaflet IT 6 – Health / Medical Expenses Relief, Form MED 1 (PDF, 888KB) or phone your Regional LoCall number.
Tuition Fees
Tax relief at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2010/20110 and 2011/20121 is €5,000. For more information see Leaflet IT 31 – Tax Relief for Tuition Fees.
Tax Relief Available to Systematic Short-time Workers
The exemption from income tax for Jobseeker’s Benefit paid to systematic short-time workers has been extended indefinitely.
PRSI – Employers/Employees
Class A (Normal rate at which contributions are made)
| Employee’s Income chargeable as below: | Total | Employer’s rate |
|---|---|---|
| Earnings up to €75,036 to PRSI @ 4% plus a Health Contribution of 4% |
8% | 10.75% |
| Earnings over €75,036 (€1,443 per week, €2,886 per fortnight & €6,253 per month) to a Health Contribution of 5% | 5% | 10.75% |
Employees are exempt from PRSI on the first €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €352 or less per week in 2009 or 2010 are exempt from PRSI and Health Contribution. However, where earnings exceed €352 per week in 2009 or 2010, the employee’s PRSI Free Allowance remains at €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €500 or less per week in 2009 or 2010 are exempt from Health Contribution.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a ‘Full’ Medical Card and people aged 70 and over are also exempt from this contribution.
PRSI – Self-Employed
Class S (Self-Employed)
| Self Employed Income chargeable as below: | Total |
|---|---|
| 3% PRSI and 4% Health Contribution on all income up to €75,036 | 7% |
| 3% PRSI and 5% Health Contribution on all income over €75,036 | 8% |
Self-employed persons are exempt from Health Contribution where the annual income is €26,000 or less in 2010 or 2011. The minimum annual PRSI contribution is €253.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a ‘Full’ Medical Card and people aged 70 and over are also exempt from this contribution.
Any PRSI and Health Contribution queries should be directed to Department of Social Protection, Information Service at (01) 7043000 begin_of_the_skype_highlighting (01) 7043000 end_of_the_skype_highlighting or at www.welfare.ie 
Universal Social Charge (USC)
The Universal Social Charge is a tax payable on gross income from all sources, including notional pay, after any relief for certain capital allowances, but before pension contributions.
The rates of Universal Social Charge are:
- 2% on the first €10,036
- 4% on the next €5,980
- 7% on the balance.
Persons over 70 years are not liable at the rate of 7% but instead pay at 4%.
Exempt Categories:
- Where an individual’s total income for a year does not exceed €4,004
- All Dept of Social Protection payments
- Income already subjected to DIRT.
- Universal Social Charge FAQs (PDF, 330KB)
- USC Certificate 2011 (PDF, 1.47MB)
Further Information
If you are a PAYE customer your tax affairs are now dealt with in the region where you live. Check our contact details for more information.
If you are calling from outside the Republic of Ireland phone +353-1-7023011 begin_of_the_skype_highlighting +353-1-7023011 end_of_the_skype_highlighting.
If you are taxed under the Self Assessment system you may contact the Revenue office shown on your notice of assessment.
Forms and Leaflets
To request any Revenue Form or Leaflet LoCall 1890 306 706 (ROI only), +353 1 7023050 begin_of_the_skype_highlighting +353 1 7023050 end_of_the_skype_highlighting (from abroad), visit any Revenue Office or see: Leaflets and Forms.
Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different service providers.
Accessibility
If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at: accessofficer@revenue.ie
PAYE Anytime
The quickest and easiest way to keep your tax up to date is to use PAYE Anytime. PAYE Anytime is an internet system that lets you do business with Revenue electronically 365 days a year. You must register first. Registration is quick and easy. See PAYE Anytime for more information.
Revenue
January 2011
* Relief in respect of the cost of maintaining a guide dog (max €825) may be claimed under the heading of Health Expenses.
** Relief for Employing a Carer (2010 and 2011) is allowable at the individual’s highest rate of tax, i.e. 20% or 41%.
Note 1
| The Child’s/Relative’s income limits | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| One Parent Family Tax Credit | 0 | 0 |
| Incapacitated Child Tax Credit | 0 | 0 |
| Dependent Relative Tax Credit | €13,837* | €13,837 |
* In the case of Dependent Relative Tax Credit, if the relative’s income exceeds the relevant limit no tax credit is due.
Exemption Limits
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single/ Widowed 65 years of age or over | €20,000 | €18,000 |
| Married 65 years of age or over | €40,000 | €36,000 |
| Single/Widowed/Married 65 years of age or over Additional for 1st and 2nd dependent child |
€575 | €575 |
| Single/Widowed/Married 65 years of age or over Additional for each subsequent dependent child |
€830 | €830 |
| Marginal Relief Tax Rate | 40%* | 40%* |
*The Marginal Relief Tax Rate only applies to persons 65 years of age or over.
Tax Rates and Tax Bands
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single / Widowed without dependent children | €36,400 @ 20%, Balance @ 41% | €32,800 @ 20%, Balance @ 41% |
| Single / Widowed qualifying for One Parent Family Tax Credit | €40,400 @ 20%, Balance @ 41% | €36,800 @ 20%, Balance @ 41% |
| Married Couple – one spouse with income | €45,400 @ 20%, Balance @ 41% | €41,800 @ 20%, Balance @ 41% |
| Married Couple – both spouses with income | €45,400 @ 20% (with an increase of €27,400 max), Balance @ 41% | €41,800 @ 20% (with an increase of €23,800 max), Balance @ 41% |
Note: The increase in the standard rate tax band is restricted to the lower of €27,400 in 2010 and €23,800 in 2011 or the amount of the income of the spouse with the lower income. The increase is not transferable between spouses.
Income Levy – 2010
2010
The Income Levy is payable on gross income from all sources before any tax reliefs, capital allowances, losses or pension contributions.
The 2010 annual rates and thresholds of the Income Levy are as follows:
| Income Levy Thresholds | Rate |
|---|---|
| Income up to €75,036 per annum | 2% |
| Income from between €75,037 to €174,980 per annum | 4% |
| Income above in excess of €174,980 per annum | 6% |
The following are exempt from the Income Levy:
- Individuals who hold full medical cards (A ‘GP only’ medical card is not a ‘full’ medical card)
- Individuals whose annual income does not exceed €15,028
- Individuals aged 65 or over whose annual income does not exceed €20,000
- Married couples, one or both of whom are aged 65 or over, whose combined income for the year does not exceed €40,000
All Social Welfare payments are also exempt from the Income Levy.
For the latest information on the Income Levy including Frequently Asked Questions and the Income Levy Certificate 2009 & 2010
Note: The Income Levy is abolished with with effect from 1 January 2011.
Rent-a-Room Relief
Where a room (or rooms) in a person’s sole or main residence is (are) let as residential accommodation, gross annual rental income, together with any sums received for the provision of meals or other services supplied in connection with the letting, may be exempt from income tax where the aggregate amount received in the year of assessment does not exceed the annual limit ( €10,000 for 2010 & 2011). Relief in respect of mortgage interest relief is not affected. The relevant Capital Gains Tax/Stamp Duty provisions are also not affected. For more information see Leaflet IT 70 – A Revenue Guide to Rental Income.
Childcare Services
Childcare Services relief is a scheme of tax relief for income arising from the provision of certain childcare services. When the gross annual income from the provision of childcare services does not exceed €15,000 in 2010 or 2011 the income is exempt from tax. The childcare service must be provided in the carer’s home, not the children’s home and no more than 3 children may be cared for at any time.
Rent Relief for Private Rented Accommodation
| Personal Circumstances | Tax Year 2010 | Tax Year 2011 |
|---|---|---|
| Single Under 55 max. | €2,000 | €1,600 |
| Single Over 55 max. | €4,000 | €3,200 |
| Widowed/ Married under 55 max. | €4,000 | €3,200 |
| Widowed/ Married over 55 max. | €8,000 | €6,400 |
Relief can be claimed by completing Form Rent 1 – Claim for Rent Relief on Private Rented Accommodation (PDF, 373KB)
Tax Relief for Loan Interest (Secured and Unsecured)
Tax Relief at Source (TRS) on Secured loans
Tax relief for home mortgage interest (secured loans) is not given through the tax system but is instead granted at source (TRS). Mortgage repayments are reduced by the amount of the tax credit due. For example, if the interest element of your mortgage repayment per month is say €500, your mortgage lender will reduce your monthly mortgage payment by €100 per month. This reduction is the same as giving tax relief at the standard rate of tax (20%).
Any future adjustments in your tax relief will be made automatically by your mortgage lender. It is not necessary to claim relief on your annual tax return or to contact your local Revenue office.
If, however, you are making mortgage repayments and not receiving Tax Relief at Source, you should contact TRS Section, Collector-General’s Division at LoCall 1890 46 36 26 who will arrange for the relief to come into effect. For further information see: Leaflet CG13 – Mortgage Interest Relief (Tax Relief at Source).
Unsecured Home Loans
Relief for interest payments made on unsecured Home Loans used for qualifying purposes, i.e. repair or improvement of your sole or main residence can be claimed by review at the end of the tax year.
If, however, you are paying interest on a qualifying private residence mortgage in excess of the ceiling for relief, listed below, and you are receiving Tax Relief at Source on this interest then there will be no additional relief due in respect of a qualifying unsecured home loan.
Amount of Relief Available
2009: From 1 January 2009, First-time buyers – the rate of mortgage interest relief is increased from 20% to 25% in years 1 and 2 and to 22.5% in years 3, 4 and 5. The relief remains unchanged at 20% for years 6 and 7 of the mortgage. First time buyers relief ends after year 7.
Non-first time buyers – the rate of mortgage relief is reduced from 20% to 15%.
2010: Qualifying loans taken out before 1 July 2011 will continue to get relief for 7 years. Transitional measures will be provided for qualifying loans taken out between 1 July 2011 and the end of 2012.
2011: Loans taken out from 1 January 2004 to 31 December 2011, subject to qualifying loan criteria, are eligible for TRS Mortgage interest relief until 31 December 2017.
Those whose entitlement to relief would, in the absence of this change, expire in 2010 or after, will continue to qualify for relief at the applicable rate up until the end of 2017.
The relief will be abolished completely by the end of 2017.
For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief.
| Personal Circumstances | First Time Buyers | All Others |
|---|---|---|
| Single | €10,000 | €3,000 |
| Married/Widowed | €20,000 | €6,000 |
Note: Amounts shown in the above table are the ceiling amounts for the years 2010 and 2011
Medical Insurance Premiums
Tax Relief at Source (TRS)
Tax relief for medical insurance premiums paid to authorised insurers is granted at source (TRS). Subscribers will pay a reduced premium (80% of the gross amount) to the authorised medical insurer. This reduction is the same as giving tax relief at the standard rate of tax (20%).
Employees whose medical insurance premiums are paid on their behalf, by their employer, as a Benefit-in-Kind, will not have been allowed tax relief at source. To claim the relief due it will be necessary to notify your local Revenue Office by phone, email or in person with the relevant details or by completing your annual tax return.
Revenue Job Assist
Additional tax relief at the individual’s highest rate of tax, i.e. 20% or 41% in 2010 and 2011, is available for people who have been unemployed for one year or more and who take up a qualifying job. Relief in the first year of employment is €3,810 plus €1,270 for each child, reducing to two-thirds of that amount in Year 2 and one-third in Year 3. This relief is also available for persons who have been in receipt of either Disability Allowance, Blind Person’s Pension or Invalidity Pension for 12 months or more, Illness Benefit for 3 years or more or released after 12 months or more in prison. For more information see Leaflet IT 58 – Job Assist Information for Employees (PDF, 148KB).
Revenue Approved Permanent Health Benefit Schemes
Where an employer deducts the contributions from gross pay the tax relief is given at source. Therefore no further action is necessary to claim relief.
Where an employer does not deduct the contributions from gross pay relief can be claimed, by notifying your local Revenue office of the relevant details by phone, email or in person ( See Further Information) or by completing your annual tax return.
Tax Relief on Service Charges
Income tax relief is available for individuals who pay local authority and other service charges. Relief is given for service charges paid in full and on time in the previous calendar year. A maximum of €400 tax relief is granted (at the 20% rate) in 2011 for service charges paid in the year 2010. For more information see Leaflet IT 27 – Tax Relief for Service Charges (PDF, 1.1MB).
Home Carer’s Tax Credit
A tax credit at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for married couples where:
- One spouse (the ‘home carer’) works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to Social Welfare child benefit, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the couple for the year.
- The home carer’s income is not in excess of €5,080. A reduced tax credit applies where the income is between €5,080 and €6,880 in 2010 or between €5,080 and €6,700 in 2011.
The tax credit is not available to married couples that are taxed as single persons. Neither is the tax credit available to married couples with combined incomes over €45,400 in the tax years 2010 or €41,800 in 2011 and who claim the increased standard rate tax band for dual income couples. For more information and also to claim the relief due complete the application form in Leaflet IT 66 – Home Carer’s Tax Credit (PDF, 694KB) and send it to your local Revenue office. Alternatively, you can telephone your Regional LoCall number (see Further Information) with details of your claim.
Trade Union Subscriptions
An annual flat rate allowance of €350 at the standard rate of tax 20% (tax credit €70) is available for Trade Union subscriptions paid in 2010. The full allowance is available in 2010 regardless of the actual amount of the subscription paid. If you are/were a member of a Trade Union at any time during 2009 or 2010 and you have not been granted relief for subscriptions made, you can phone your Regional LoCall number.
Note: Tax relief for Trade Union subscriptions has been abolished with effect from 1 January 2011.
Health/Medical Expenses Relief
You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), from 1 January 2009 (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Hibernian Aviva Health, Quinn-healthcare, VHI, a Health Authority, or where a compensation payment is made or will be made.
For more information see Leaflet IT 6 – Health / Medical Expenses Relief, Form MED 1 (PDF, 888KB) or phone your Regional LoCall number.
Tuition Fees
Tax relief at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2010/20110 and 2011/20121 is €5,000. For more information see Leaflet IT 31 – Tax Relief for Tuition Fees.
Tax Relief Available to Systematic Short-time Workers
The exemption from income tax for Jobseeker’s Benefit paid to systematic short-time workers has been extended indefinitely.
PRSI – Employers/Employees
Class A (Normal rate at which contributions are made)
| Employee’s Income chargeable as below: | Total | Employer’s rate |
|---|---|---|
| Earnings up to €75,036 to PRSI @ 4% plus a Health Contribution of 4% |
8% | 10.75% |
| Earnings over €75,036 (€1,443 per week, €2,886 per fortnight & €6,253 per month) to a Health Contribution of 5% | 5% | 10.75% |
Employees are exempt from PRSI on the first €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €352 or less per week in 2009 or 2010 are exempt from PRSI and Health Contribution. However, where earnings exceed €352 per week in 2009 or 2010, the employee’s PRSI Free Allowance remains at €127 per week or €26 per week for employees on a modified PRSI rate. Employees earning €500 or less per week in 2009 or 2010 are exempt from Health Contribution.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a ‘Full’ Medical Card and people aged 70 and over are also exempt from this contribution.
PRSI – Self-Employed
Class S (Self-Employed)
| Self Employed Income chargeable as below: | Total |
|---|---|
| 3% PRSI and 4% Health Contribution on all income up to €75,036 | 7% |
| 3% PRSI and 5% Health Contribution on all income over €75,036 | 8% |
Self-employed persons are exempt from Health Contribution where the annual income is €26,000 or less in 2010 or 2011. The minimum annual PRSI contribution is €253.
Note: Recipients of a Social Welfare Widow’s or Widower’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution. Holders of a ‘Full’ Medical Card and people aged 70 and over are also exempt from this contribution.
Any PRSI and Health Contribution queries should be directed to Department of Social Protection, Information Service at (01) 7043000 begin_of_the_skype_highlighting (01) 7043000 end_of_the_skype_highlighting or at www.welfare.ie
Universal Social Charge (USC)
The Universal Social Charge is a tax payable on gross income from all sources, including notional pay, after any relief for certain capital allowances, but before pension contributions.
The rates of Universal Social Charge are:
- 2% on the first €10,036
- 4% on the next €5,980
- 7% on the balance.
Persons over 70 years are not liable at the rate of 7% but instead pay at 4%.
Exempt Categories:
- Where an individual’s total income for a year does not exceed €4,004
- All Dept of Social Protection payments
- Income already subjected to DIRT.
- Universal Social Charge FAQs (PDF, 330KB)
- USC Certificate 2011 (PDF, 1.47MB)
Further Information
If you are a PAYE customer your tax affairs are now dealt with in the region where you live. Check our contact details for more information.
If you are calling from outside the Republic of Ireland phone +353-1-7023011 begin_of_the_skype_highlighting +353-1-7023011 end_of_the_skype_highlighting.
If you are taxed under the Self Assessment system you may contact the Revenue office shown on your notice of assessment.
Forms and Leaflets
To request any Revenue Form or Leaflet LoCall 1890 306 706 (ROI only), +353 1 7023050 begin_of_the_skype_highlighting +353 1 7023050 end_of_the_skype_highlighting (from abroad), visit any Revenue Office or see: Leaflets and Forms.
Please note that the rates charged for the use of 1890 (LoCall) numbers may vary among different service providers.
Accessibility
If you are a person with a disability and require this leaflet in an alternative format the Revenue Access Officer can be contacted at: accessofficer@revenue.ie
PAYE Anytime
The quickest and easiest way to keep your tax up to date is to use PAYE Anytime. PAYE Anytime is an internet system that lets you do business with Revenue electronically 365 days a year. You must register first. Registration is quick and easy. See PAYE Anytime for more information.
Revenue
January 2011