Congratulations! If you’ve recently tied the knot, you may have additional cause for celebration. As a married couple, you could save up to €3,675 on your tax bill every year. In this article, we explain how to assess yourselves as a married couple. Then we examine the cash savings you make with marriage tax credits, and how to apply. Let’s begin.
Contents
What Are The Tax Assessment Options For Married Couples?
Joint Assessment
Separate Assessment
Assessment as Separate Treatment
Taxation for Civil Partners in Ireland
Married Couple Tax Calculator
What Kind of Savings Can We Make?
Marriage Tax Credits FAQs
What Are The Tax Assessment Options For Married Couples?
Joint Assessment
Joint assessment is the option that will benefit most couples in Ireland. It allows couples to split their tax credits and rate band between both parties. If only one partner earns a taxable income, Revenue can assign all tax credits and the standard rate cut-off bands to that person.
If both of you have taxable income, you can choose which of you is to be the assessable spouse. That is, the person responsible for filing tax returns and then paying any tax due. To confirm which of you is to be the assessable partner, you must complete the Assessable Spouse Election Form or the Nominated Civil Partner’s Election Form.
Separate Assessment
If you register for a separate assessment, the tax affairs of each partner remain separate from one another. However, the two parties can equally divide some of the tax credits between them.
These tax credits include:
- married or civil partner’s tax credit
- age tax credit
- blind person’s tax credit
- incapacitated child tax credit
Employee tax credits (PAYE tax credits), along with any employment expenses, are allocated to the appropriate partner and cannot be transferred. However, a partner may claim any other tax credits unused by their partner. The standard cut-off point (up to €51,000 in 2024) can be transferred to a partner at the end of the tax year. Please note this will increase to €53,000 from 2025 onwards.
Note that for separate assessment, the request must be made to Revenue between 1st October of the preceding year and the 31st of March in the year of the claim.
Assessment as Separate Treatment
The final option is that you can each be assessed as a single person. This means that you are each taxed on your own income. You receive the same tax credits and standard cut-off point that would apply to a single person.
Under this system, each of you will be responsible for paying your own tax, claiming your own tax credits and completing your own individual tax returns. You should also note that one partner cannot claim relief for payments made by the other and you won’t be able to transfer tax credits or the standard rate cut-off point to one another. You can change the above assessment by notifying the Revenue, however when you request separate treatment, it cannot be backdated and will stay in place until you notify Revenue to change the assessment.
Taxation for Civil Partners In Ireland
Civil partners in Ireland hold the same financial rights as married couples across various areas, including tax, inheritance, property ownership, pensions, and maintenance in the case of a separation. Revenue also recognises some legal relationships between same-sex couples established in other countries — such as marriages, civil unions, or partnerships— when it comes to tax matters.
Married Couple Tax Calculator
Here’s an easy-to-understand example showing how much income tax a married couple in Ireland might pay based on the 2025 tax bands:
Tax bands for 2025:
- Single-income couples: Up to €53,000 taxed at 20%, with anything above taxed at 40%.
- Dual-income couples: Up to €88,000 taxed at 20%, with anything above taxed at 40%.
Example:
- Partner 1’s income: €50,000
- Partner 2’s income: €40,000
- Total combined income: €90,000
Step 1: Apply the tax bands
Since the couple is earning a combined income of €90,000, which is more than the €88,000 threshold for the dual-income tax band, they will be taxed as follows:
- First €88,000 will be taxed at 20% (since this is within the dual-income band).
- The remaining €2,000 will be taxed at 40% (as it exceeds the €86,000 threshold).
Tax calculation:
- First €88,000 at 20% = €88,000 × 0.20 = €17,600
- Remaining €2,000 at 40% = €2,000 × 0.40 = €800
Step 2: Total tax payable
- Total tax payable = €17,600 + €800 = €18,400
Conclusion:
Income tax calculation for this couple would be €18,400 before deduction of tax credits for dual income received of €90,000, based on the updated tax bands for 2025.
Tax Credits for Married Couples: What Kind of Savings Can You Make?
The primary benefit of joint assessment is the ability to transfer tax bands and credits between partners. This means you can reduce the amount of tax you have to pay at the higher rate, which could be a significant saving. The standard rate cut-off point for married couples is €53,000 in 2025 based on one spouse with income.
The tax rate for this amount is 20%, with the balance taxed at 40%. If both partners have income, which is increasingly the case, this standard rate cut-off point can increase by up to €35,000. Aside from the tax rate cut-off point, the other benefits you can receive from tax credits span several areas of married life.
If one of you is a ‘stay-at-home parent’ or out of work, then your partner can claim an extra tax credit called Home Carers Tax Credit. This could be worth up to €1,800 in 2024 and €1,950 in 2025.
Some tax credits double in value for married couples, others stay the same; and this may vary from couple to couple, depending on their individual circumstances.
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Marriage Tax Credit FAQs
1. Do you pay less tax if you are married?
Yes, married couples and civil partners can pay less tax if they meet the required criteria for tax bands and credits. You may qualify for a tax refund if the total tax you paid as two single individuals exceeds what you would owe as a married couple. This difference is calculated after December 31st of the year you get married.
2. How to split tax credits between spouses?
You can split or transfer tax credits by logging into MyAccount and managing your current year’s tax. Revenue will provide a recommendation on how your credits should be allocated, or you can choose how to allocate them yourself.
3. What is the tax allowance for married couples?
Married couples in Ireland can benefit from joint assessment, pooling tax credits and rate bands, often lowering their overall tax liability.
4. How much can a married couple earn before tax?
From 2025, married couples and civil partners in Ireland will have updated tax bands. Single-income couples can earn up to €53,000 (up from €51,000 in 2024) before being taxed at 40%, while dual-income couples can earn up to €88,000 (€84,000 in 2024) before the higher rate applies. Any income above these thresholds is taxed at 40%, allowing couples to earn slightly more before reaching the higher tax bracket.
5. Is it better to be jointly assessed for tax?
Joint assessment often lowers a couple’s tax bill by allowing unused credits and rate bands to be shared, especially if one partner earns significantly more.
6. How to transfer tax credits?
- To transfer tax credits, follow these steps:
- Go to Revenue.ie and sign in to myAccount.
- Click on PAYE Services and select “Manage Your Tax” for the current year.
- Choose “Allocate credits and rate band” and decide how to split them between you and your spouse or civil partner.
- Once you’re happy with the changes, submit them, and Revenue will update your tax accordingly.
