Irish middle-income workers are paying more income tax than those in Britain, Spain, Sweden, the US and Switzerland.
This is according to a new report from the Irish Tax Institute which says the “squeezed middle” has been hit with hikes in the last nine budgets in a row.
Workers here earning €55,000 a year are now paying on average €800 more than those in the UK.
The 50-page report claims that it is income tax, rather than the USC, which is putting pressure on middle-income families.
The organisation said those on a salary of €75,000 pay €4,500 more than their British counterparts, while people on €100,000 pay €12,500 more in tax than those in the UK.
The Tax Institute said earners move from the 20% rate of tax to the 40% rate at relatively low incomes.
That means people who earn less than the average industrial wage hit the top rate of income tax of 40%.
President of the Institute Tax Institute Mark Barrett said:
“The budget-by-budget approach to personal taxes over nine consecutive budgets has led to some unintended consequences in the personal tax system and has created peculiar traits across all salary levels; including lower, middle and higher income levels.”