The top 10% of earners will contribute nearly two-thirds (63.2%) of income tax and USC yields this year, according to projections from the tax strategy group within the Department of Finance ahead of the upcoming Budget.
In value terms, the top tenth of earners, ie those earning more than €102,000 in gross pay, will account for 62.9% of income tax receipts and 64.9% of USC payments in 2024.
The top 5%, who are earning more than €140,500, meanwhile, will make up 48.5% of the income tax and USC yield, including 47.9% of income tax and 51.8% of USC.
The bottom 80%, including all taxpayers earning less than €69,500, will pay a combined 21% of expected income tax and USC take this year.
The tax strategy group said the figures were evidence of a progressive tax system that ensures that the burden of taxation falls most heavily on those with a higher ability to pay.
However, the group asked whether the level of “progressivity” …