Income tax on my pension

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fred123456

Registered User
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57
Hi,

Probably a silly question and answered a thousand times, apologies upfront.

I am trying to think about take home pay from a basic pension and tax implications.

If at retirement in a couple of years 66 my retirement from single pension is 14,000 and state pension is 14,000(worked private sector 22 years) and my wife is 14,000 state pension + defined benefit scheme 7,000 + 6,000 single pension scheme(worked in private sector also.

so in total pension might be around
55,000. Am i right in saying the first 36000 is tax free and everything after that you pay 40% tax on and USC of roughly 4%. Are their reliefs i can avail of. Two children but hopefully not dependent.

I am trying to work my weekly, monthly income in retirement.

Any help much appreciated

fred.
 
No, income tax doesn't work like that

As a married couple you are allowed up to € 51,000 at standard rate and your wife is allowed up to € 33,000 at standard rate so all of your income will be taxed at standard rate

Total Income
€ 55,000​
Taxed due at standard rate 20%
€ 11,000​
Married couple tax credit
- € 3,550​
Age tax credit
-€ 490​
Employee tax credit x 2
-€ 3,550​
Tax due
€ 3,410​

So you annual after tax income will be around € 51,590 or € 1,000 per week or € 4,300 per month
 
Thanks JPD, i was confused because loads of places were saying 36000 and after that 40% tax on pension income. Thanks again.
 
You should read how income tax works on the Revenue website

www.revenue.ie

The € 36,000 is the tax exempt amount for low income couple's - you don't qualify for that
 
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