Tax after age 65

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guerngirl

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What tax is paid on income after age 65?
If a retired couple earns for example 110k in total between them (60k in rental income and an annual private pension payment of 50k), what would the tax impact be? What tax credits are they entitled to?
 
guerngirl said:
What tax is paid on income after age 65?
If a retired couple earns for example 110k in total between them (60k in rental income and an annual private pension payment of 50k), what would the tax impact be? What tax credits are they entitled to?
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The only change that happens when people turn 65 is that they get an additional age tax credit (€245 each). Apart from that, they pay tax as before. (When they turn 66, they no longer have to pay PRSI on their income.)

(There are changes to exemption limits, but at that level of income, they're irrelevant.)
 
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This calculator might be useful in this context.
www.pwc.ie

Income tax calculator 2024

Use the interactive income tax calculator to estimate your tax position for the coming year in light of the measures announced in Budget 2024.
www.pwc.ie www.pwc.ie
 
When does the €18,000 (36,000 for a couple) tax free allowance kick in
 
Do you pay standard tax on your monthly pension payment when you start receiving it at 65?
 
No tax is deducted from the State pension payments (Contributary nor Non-Contributary) but tax will be deducted from private pensions paid by pension trustees in Ireland - the tax deducted will be calculated using your tax credits and rates as given out by Revenue.
 
jpd said:
No tax is deducted from the State pension payments (Contributary nor Non-Contributary)
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For the avoidance of any confusion, the State Pension is taxable as income in the normal way. No tax is deducted at source but tax credits are adjusted to take account of the amount of pension in payment. There is no USC or PRSI payable on the State Pension.
 
If you invest in a multi year deposit such as those in Raisin bank and the interest is paid at the end, is this DIRT free if the recipient is over 65 at that point?
 
Someone mentioned the 18k exemption (it’s NOT a tax free allowance), you have to be earning less than that between state pension and other income to also be exempt from DIRT.
 
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