I'm afraid not.
Using Brendan's example, the additional tax payable is €6,120 leaving an after tax gain of €5,880.
The effective rate on the gross income is 33.74%.
This does not mean that the €12,000 rental income should be taxed at 33.74%, but rather that the tax rate averaged on €62,000 is 33.74%.
Brendan's example was easy to work out as the lower rates of income tax and USC were used up by the salary.
In other cases you might have to take account of unused portions of lower rates.
That said, your point regarding incomes subject to progressive rates and incomes subject to flat rates is legitimate.
Hi Sophrosyne
Yes, I am conscious that ~34% in this example represents the effective tax rate on the aggregate income and not the rental income alone.
I don't really see why you would treat the PAYE income alone as having benefited from tax credits and having used up the lower tax rates - you could just as well have treated the rental income as having these benefits.
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