A Quick Look At Taxes...

by Rob 9. May 2012 11:51

A lot of people have asked me about living in Ireland.  "What's the work like?" "What are the people like?"  Sooner or later, everyone seems to bring up the taxes.  'But dude, aren't taxes like 50% in Europe!?!'  Before I got here, that was my impression as well.  I'd heard it, so it must be true.  It was probably even on a TV show or something.

After paying taxes in both countries, I can say the 50% tax rate is a bit misleading.  The maximum tax rate in Ireland is 51%.  But what does that really mean?  Sure, as you approach an infite income, your tax rate approaches 51%.  That's the upperbound.  It's not really representative of what people are actually paying.  Only a small percentage of their total income is taxed at 51%.

Here's what I've found, for someone in my situation (no children, part-time student, etc, etc...) using the numbers and values in 2011 (as given by TaxACT and Deloitte)

 

 

Very interesting and not at all what I would have expected.

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