Friday April 10, 2020

Lump Sum Special: Most retiring public servants will avoid tax on lump sums

The majority of retiring public sector workers will escape tax on the lump-sum portion of their retirement benefits.

19th February, 2012

The vast majority of retiring public sector workers will escape tax on the lump-sum portion of their retirement benefits, with tax payable only on lump-sums of more than €200,000. With government estimates suggesting that the average lump-sum with full service is €81,000, most retiring public servants will not face a tax bill on it.

Those with larger lump-sums, from €200,000 to €575,000, will have to pay tax at 20 per cent, and a Revenue spokesman...

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