High and low earners pay more tax pro-rata compared to those in middle

Irish top and bottom earners pay more in taxes on a pro-rata basis than middle-income earners, according to research conducted by the Nevin Economic Research Institute (NERI).

Overall, the Irish income tax system is progressive, though the indirect taxation system is regressive, said the report’s author, Michael Collins.

On average, Irish households pay 13.6% of their gross income in direct taxes and 10.36% in indirect taxes, which includes Vat, excise and levies.