Quarter of all income goes to 140,000 who earn over €100,000

Some 140,000 taxpayers with incomes over €100,000 earn over one quarter of all the personal income declared for tax, according to new Revenue figures. The data shows that this group is expected to pay over 45 per cent of total income tax and USC (Universal Social Charge) this year.

Within this group, there are 28,000 taxpayers earning over €200,000, which represents almost 11 per cent of total income earned in the State. This group pays around 20 per cent of total income tax and USC.

The Revenue Commissioners figures are based on “ taxpayer units” which can be either single people, couples with one earner or couples who are jointly assessed for tax. They show that there are almost 850,000 taxpayers who earn between €30,000 and €70,000 and account for around 30 per cent of all taxes raised. This groups earns around 40 per cent of total income declared.

The figures show that there are an estimated 2.4 million taxpayer units. Total income declared for tax and USC is estimated at €97.8 billion, on which income tax and USC of €18.7 billion will be collected.

The Revenue figures show the impact of measures in recent budgets to remove lower earners from the USC net. An Irish Tax Institute report published this week estimated that 500,000 lower earners have been taken out of the net over the past couple of years.

The Revenue data shows that the 1.2 million people who earn less than €30,000 now pay just under 3 per cent of total income tax and USC.