The main taxes paid by households
The PAYE system. Employers deduct the
tax automatically from their employee’s
wages and pass it on to the revenue
commissioners. This system is
progressive, so the more you earn, the
greater income tax has to be paid.
Employee PRSI – This is a compulsory
insurance payment by the employees to
the state. Money goes towards
unemployment payments, pensions,
maternity benefits.
VAT - Is a tax paid by consumers on
certain goods and services. Goods are
bought, VAT is paid. The two main VAT
rates are 13 % and 21 ½ %.
Excise duties are taxes levied on certain
types of goods within the state, e.g.
alcohol and tobacco
Motor Tax is a tax on all roadworthy
vehicles. The amount of tax varies with
the size of the vehicle