Budget 2023 - Tax Calculator assumptions

Due to the complexity of Income Tax rules it has been necessary to make some simplifications for the purposes of the Tax Calculator.

Tax Calculator 2023 Notes

1. Single/Married Option: Use the Single Person option if you are married but separately assessed.
2. If you are an employee, the calculator assumes that you are an employed contributor for PRSI purposes (Class A) under 66 years of age. If you have Other Income, the calculator assumes that you are liable to PRSI at 4% on that income.
3. For self-employed individuals, the calculator applies the additional 3% USC charge (11% rate) to income in excess of €100,000. The calculator includes the earned income tax credit for self-employed individuals. If you have Other Income, the calculator assumes that you are liable to PRSI at 4% on that income.
4. Dependent Children/Child:
   1. Home Carer Tax Credit – A dependent child is:
      A child for whom Social Welfare Child Benefit is payable – this includes all children under 16 and children in full-time education under 18.
   2. One Parent Family Tax Credit – A dependent child is:
      A child who is under 18 years of age at the start of the tax year, or if 18 or older, is in full-time education.
5. Deposit interest is not included in the Tax Calculator, as DIRT deducted at source meets the income tax liability.
6. Pension Contributions: Restrictions on the maximum allowable pension contribution apply dependant on age and earnings. Restrictions have been applied in the Tax Calculator. The Tax Calculator reduces NET Take Home Pay by pension contributions on the assumption the contributions are made out of Gross/Other income.
7. Home Carer Tax Credit: The full tax credit of €1,700 for 2023 and €1,600 for 2022 is given in the Tax Calculator if the home carer's income is less than or equal to €7,200 for 2023 and 2022.
   If the home carer's income is greater than €7,200 for 2023 and 2022, the standard rate band is increased by the home carer's income and the home carer tax credit is not given.
8. Calculator assumes that no property based reliefs are applicable. 
9. A Rent Tax Credit of €500 per annum for renters in the private rented sector is available for those who are not in receipt of any other State housing support from the tax year 2022. Only one credit may be claimed per person per year, however the value of the credit will be doubled in the case of married couples and civil partners. The Tax Calculator does not provide for the rent tax credit. The rent tax credit can be claimed for 2022 from early in 2023.

The information provided to this calculator is not used by EY for any purpose other than to calculate an estimate of your tax liability in accordance with the information given. It is not tracked, recorded, stored, reproduced or used by EY for any purpose.

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