Home Latest news New report says large number of Irish workers are paying more tax...

New report says large number of Irish workers are paying more tax than British counterparts


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.”