How much do you actually save with taxsaver tickets?

lola · 16-07-2008, 10:46

Hi, can anyone tell me how to calculate what the real cost of the taxsaver ticket is? I travel to Maynooth to Ashtown daily and the relevant taxsaver ticket costs €90, but since I buy it through work, it comes out of my gross pay, so the real cost is less than €90. I'm trying to work out whether it's worth my while to buy this ticket, or if it would cost less to buy weekly tickets. I'm not sure that I really get value out of the taxsaver ticket since my journey is pretty short!

Mark Gleeson · 16-07-2008, 11:04

Day return is 4.30, so its cheaper in cash terms to buy a 7 day ticket at 20.60 than a monthly

The exact savings depend on what tax rate you pay, you save on PRSI and income tax.

Take your monthly pay before tax, subtract from that the value of the ticket, the number you get is the amount your tax is now calculated at. The income tax and PRSI you pay are both reduced as a result. There are some examples http://www.taxsaver.ie/ie/how_much_can_i_save.asp. Basics are you will save around 24% rising to over 45% if you pay at the higher tax rate

Note the monthly ticket would be valid on all trains in the semi circle formed by Maynooth, Balbriggan, Kilcoole and Hazelhatch, so if you head into Dublin on the weekend for instance its effectively free

The annual ticket is typically equally to 10 months in cost sometimes less, 890 in this case

lola · 16-07-2008, 11:44

Thanks for your reply, Mark!

Colm Donoghue · 16-07-2008, 20:18

just a slight correction, 41%paye + 6% prsi is 47% on the higher rate,
or 20% + 6% prsi is 26% on the standard rate.

plus your employer will save on employers prsi of about 10.75%

dowlingm · 17-07-2008, 17:46

that's pretty generous. surprisingly so in fact. I thought pretty much all of those allowances were standard rate credits.

all you get over here is a non-refundable tax credit (so if you don't pay much tax you don't get much/any benefit) of 15% standard rate Federal tax at the end of the year when you file your return. A lot of transit advocates feel that the money should be handed direct to the operator but that doesn't have the same electoral appeal.

I'd prefer to see the credit at least refundable because it provides an incentive for poorer users to get off more expensive-per-ride cash fares and onto unlimited use monthly or weekly passes.

Some argue that giving someone 48% back rewards the rich but those are the ones who are hardest to entice out of cars...

16-07-2008, 10:46	#1
lola New to the board Join Date: Jul 2008 Posts: 2	How much do you actually save with taxsaver tickets? Hi, can anyone tell me how to calculate what the real cost of the taxsaver ticket is? I travel to Maynooth to Ashtown daily and the relevant taxsaver ticket costs €90, but since I buy it through work, it comes out of my gross pay, so the real cost is less than €90. I'm trying to work out whether it's worth my while to buy this ticket, or if it would cost less to buy weekly tickets. I'm not sure that I really get value out of the taxsaver ticket since my journey is pretty short!

16-07-2008, 11:04	#2
Mark Gleeson Technical Officer Join Date: Dec 2005 Location: Coach C, Seat 33 Posts: 12,669	Day return is 4.30, so its cheaper in cash terms to buy a 7 day ticket at 20.60 than a monthly The exact savings depend on what tax rate you pay, you save on PRSI and income tax. Take your monthly pay before tax, subtract from that the value of the ticket, the number you get is the amount your tax is now calculated at. The income tax and PRSI you pay are both reduced as a result. There are some examples http://www.taxsaver.ie/ie/how_much_can_i_save.asp. Basics are you will save around 24% rising to over 45% if you pay at the higher tax rate Note the monthly ticket would be valid on all trains in the semi circle formed by Maynooth, Balbriggan, Kilcoole and Hazelhatch, so if you head into Dublin on the weekend for instance its effectively free The annual ticket is typically equally to 10 months in cost sometimes less, 890 in this case __________________ Unhappy with new timetable - let us know Last edited by Mark Gleeson : 16-07-2008 at 11:13.

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16-07-2008, 11:44	#3
lola New to the board Join Date: Jul 2008 Posts: 2	Thanks for your reply, Mark!

16-07-2008, 20:18	#4
Colm Donoghue Really Regular Poster Join Date: Dec 2005 Posts: 873	just a slight correction, 41%paye + 6% prsi is 47% on the higher rate, or 20% + 6% prsi is 26% on the standard rate. plus your employer will save on employers prsi of about 10.75%

17-07-2008, 17:46	#5
dowlingm Really Really Regluar Poster Join Date: Aug 2006 Location: Toronto, Canada Posts: 1,371	that's pretty generous. surprisingly so in fact. I thought pretty much all of those allowances were standard rate credits. all you get over here is a non-refundable tax credit (so if you don't pay much tax you don't get much/any benefit) of 15% standard rate Federal tax at the end of the year when you file your return. A lot of transit advocates feel that the money should be handed direct to the operator but that doesn't have the same electoral appeal. I'd prefer to see the credit at least refundable because it provides an incentive for poorer users to get off more expensive-per-ride cash fares and onto unlimited use monthly or weekly passes. Some argue that giving someone 48% back rewards the rich but those are the ones who are hardest to entice out of cars...