Dublin Bus Tax Saver quick question

ION08

Hi Guys

Sorry if this question is a bit dense but I am questioning the value of my annual Dublin Bus Tax saver which I am paying through my wages

I am wondering if it would make sense for me to just use a Top Up leap card which would then also afford me the flexibility of using both bus and train.

The cost for my annual Dublin Bus card is €1320 per year
It is deducted out of my payslip as -€132 each month for 10 months

I'm trying to wrap my head around it to understand what it is actually costing me in terms of Real money so that I can compare it to what I would pay on a Top Up card.

Can somebody please explain this to me as I'm useless when it comes to understanding Payslips and deductions.

FYI I am earning above the 40% threshold

joe_99

That is deducted before your tax is calculated so you are not paying tax on that €132. That is how the saving is realised.

Pbo

The €1,320 ticket will be costing you €673.20 or €67.32 per month

You will save €646.80

There is a calculator on taxsaver website

Wheety

Yeah as above, the saving is in the tax. It's only really costing you around €80 a month. You can still top it up with cash and use it on the Luas.

Seaswimmer

Assuming my maths are ok the net cost to you roughly is

tax relief on 1320 = 40% of 1320 = €528

so net cost = 1320 - 528 = 792

so roughly €15 per week.

Given that the weekly Leap Dublin Bus cap is €27.50 and the multi mode cap is €40 it looks like you are far better off using the yearly tax saver.

Edit.. Figures in PBOs post above more accurate as they probably take PRSI savings into account

ION08

This is great, thanks for clarifying.

So if i grasp this correctly, the 132.00 is taken away from my Gross salary which lowers the overall Taxable amount of my salary.

So the saving is that I am not being taxed 40% on the 132.00 right?

Wheety wrote: »

You can still top it up with cash and use it on the Luas.

I didn't know this, this is probably the best option then if I want to use the bus and occasionally the Train? Thanks for this!

Pbo

Also savings on PRSI and USC

howiya

ION08 wrote: »

This is great, thanks for clarifying.

So if i grasp this correctly, the 132.00 is taken away from my Gross salary which lowers the overall Taxable amount of my salary.

So the saving is that I am not being taxed 40% on the 132.00 right?



I didn't know this, this is probably the best option then if I want to use the bus and occasionally the Train? Thanks for this!

You also save PRSI and USC on the 132

ION08

Ok Perfect. So then it definitely makes sense to keep my Annual Dublin bus Taxsaver ticket and top it up manually for the flexibility of occasionally taking the train.

Wheety

ION08 wrote: »

Ok Perfect. So then it definitely makes sense to keep my Annual Dublin bus Taxsaver ticket and top it up manually for the flexibility of occasionally taking the train.

Yeah and you can still use it on the right hand side on the bus, it automatically uses your annual ticket and not any cash on the card.

Also, if you have a NFC enabled Android phone, get the top up app. Topping up with your phone is so cool :cool:

CIARAN_BOYLE

ION08 wrote: »

So the saving is that I am not being taxed 40% on the 132.00 right?

You are not being charged USC or PRSI either. So thats probably an extra 9.5% benefit.