What is the rate of Income Tax for Northern Ireland? What rate is Northern Irish Tax? 

This is a freeview 'At a glance' guide to Northern Ireland's Income Tax rates.

Tax bands & rates

These remain the same as the rest of the UK, except in Scotland

 

 

Income band 

Rate

Tax Rate %

2023-24

£

2021-22 + 2022-23

£

2020-21

£

2019-20

£

2018-19

£

Personal allowance (tax-free band)

0

0 - 12,570

0 - 12,570

0 - 12,500

0 - 12,500

0 - 11,850

Basic rate

20

12,570 - 50,270

12,570 - 50,270

12,500 - 50,000

12,500 - 50,000

11,850 - 46,350

Higher rate

40

50,270 - 125,140 

50,270 - 150,000  

50,000 - 150,000

50,000 - 150,000

46,350 - 150,000

Additional rate

45

125,140+

150,000+

150,000+

150,000+

150,000+

 

At a glance

  • HMRC continues to issue tax codes for employees in Northern Ireland as for employees in England.  
  • Any non-UK residents who own property in Northern Ireland remain subject to UK rates and allowances.
  • If you are non-UK resident with a Northern Irish correspondence address with HMRC, you should update them with your address abroad. Then, if you so wish, request that correspondence continues to be sent to your Northern Irish address. This should avoid any incorrect HMRC tax computations.

Key points to note

  • The above rates apply to non-savings income, including employment, self-employment, pension, rental and savings income.
  • Dividend income, after the dividend allowance (£1,000 for 2023-24) is taxed at 8.75%, 33.75% and/or 39.35% from April 2022, depending on the band it falls in.
  • National Insurance Contributions are the same as the rest of the UK. See National Insurance Rates and allowances
  • The UK Government has been in discussions with charitable bodies concerning the impact of donors liable at devolved rates of Income Tax in respect of Scottish tax and it was decided that Gift Aid would continue to apply at the basic rate regardless of the position of the donor. The same applies to Northern Irish donors but should the rates diverge the position will be reconsidered. 
  • Frontier workers pay Income Tax in the country where they work but must deliver an annual Self Assessment return where they live. 
    • A frontier worker is a person who resides in either the UK or the EU, EEA or Switzerland who worked in one or more of those countries but not the one they reside in. If they work in the UK this applies if they worked here by 31 December 2020.
    • Republic of Ireland residents working in Northern Ireland will pay tax directly to HMRC but submit an annual return to the Irish Revenue. They will obtain Transborder Workers Relief under the Double Taxation Treaty between the UK and Ireland so that they do not pay additional Irish tax on their employment income. They will pay Irish tax on other sources of Irish sources such as rental or investment income. 
    • Northern Irish residents working in the Republic of Ireland will pay tax directly to the Irish Revenue but will need to submit an annual Self Assessment return to HMRC. They may be eligible for foreign tax credit relief under the Double Tax Treaty Agreement with the UK and Ireland. 

The UK’s social security agreement with the Republic of Ireland

The UK has reached a reciprocal agreement with Ireland which ensures that social security coordination continues after 31 December 2020 when considering moves by the UK or Irish nationals between the UK and Ireland.

What's new?

Consultation: More fiscal powers for Northern Ireland

  • In October 2022, the Northern Ireland Assembly Department of Finance published ‘Consultation on devolution of more fiscal powers’.
  • This considers the 23 recommendations made by the Independent Fiscal Commission concerning increased fiscal devolution, including Corporation Tax, Stamp Duty Land Tax and Income Tax on dividends and savings income. 
  • The consultation closed at 18:00 on 29 November 2022. 

See Consultation: Devolution of more fiscal powers for Northern Ireland


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