John and Alice are 68 and 70 and earned income from the following sources in 2024:
| Description | Value |
|---|---|
| PAYE income | €15,000 |
| Deposit interest income received (net amount) | €1,950 |
| Description | Value |
|---|---|
| Rental profit | €10,000 |
| Dividend income received (net amount) | €4,000 |
Their total income is calculated:
| Description | Calculation | Value |
|---|---|---|
| PAYE income | €15,000 | |
| Rental profit | €10,000 | |
| Deposit Interest Income (gross) (€1,950 is 67%) | (€1,950 ÷ 67) x 100 | €2,910 |
| Dividend income (gross) (€4,000 is 75%) | (€4,000 ÷ 75) x 100 | €5,333 |
| Total income | €33,243 |
As John and Alice are both 65 or over and their total income for the period is under the exemption limit of €36,000, they are exempt for Income Tax for 2024.
Both John and Alice may also be subject to the Universal Social Charge (USC) which is calculated separately from Income Tax.
In this example Alice has not applied for her DIRT exemption from her Financial Institution. For details on how to claim this exemption see Deposit Interest Retention Tax (DIRT) Exemption.
