Individuals and married couples
If you are married, you can opt to be assessed for tax purposes via:
(a) joint assessment on the husband (s 1017) or wife (s 1018), separate assessment (s 1023), or
(b) single assessment (s 1016).
If you are separated or divorced and have not remarried, you may still, by agreement with your ex-partner, opt for joint or separate assessment (s 1026).
The current tax rates and bands for individuals and married couples are (s 15(2)):
|
Tax year 2010 |
Individual |
Single parent |
Married couple |
|
At 20% (standard rate) |
first €36,400 |
first €40,400 |
first €45,400 |
|
At 41% (higher rate) |
Balance |
Balance |
Balance |
If you are a dual income married couple, your €45,400 rate band may be increased by the lower of:
(a) €27,400, and
(b) the income of the second spouse.
Therefore the maximum standard rate band you can have as a dual income married couple in the tax year 2010 is €70,800. However, the maximum part of the standard rate band that may be transferred between the partners of a dual income married couple in a tax year is €45,400.
Unincorporated bodies and trustees
If you are an unincorporated body or trustee, your income is taxed at the standard rate (s 15(1)). Similarly, if you are a personal representative (i.e., a trustee) of a deceased person’s estate, income earned during the period of administration of an estate is taxed at the standard rate (s 799-802).
Undistributed income of an accumulatory trust is subject to a 20% surcharge (s 805).