Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Bilanol/Shutterstock

Here's what Budget 2018 means for someone earning around €100,000

Changes to the USC and the entry point level mean savings of at least €328 for these workers next year.

THE GOVERNMENT ANNOUNCED a raft of measures and initiatives as part of Budget 2018 today. They include tax cuts – and increases – as well as extra spending in areas like crime and health.

But what will it all mean for your bank balance next year? If you’re currently earning around €100,000, here’s what will change.

Private and public sector workers

Finance Minister Paschal Donohoe announced that the point at which an earner attracts the higher rate of income tax will rise next year by €750. The entry point for single earners will increase from €33,800 to €34,550.

For those earning more than €100,000, this will result in a saving of €150 next year.

As for the Universal Social Charge (USC), it was announced that the 2.5% rate will be reduced to 2% and the ceiling for this new rate will increase from €18,772 to €19,372. Meanwhile the 5% rate will drop to 4.75%.

If you’re earning €100,000, you’re paying USC across four rates, totalling €5,189.

Next year, here’s how it will play out for you:

  • 0.5% on the first €12,012 = €60.06
  • 2% on up to €19,372 = €147.20
  • 4.75% on up to 70,044 = €2,406.92
  • 8% on the rest up to €100,000 = €2,396.48

That’s a total of just under €5,011 and a saving of €178.

Total saving: €328

Self-employed workers

If you are self-employed and currently earning €100,00o, you will benefit from the €150 income tax saving and the €178 USC saving detailed above.

However, Donohoe also announced a €200 increase in the Earned Income Credit which will benefit 147,000 self-employed people in Ireland.

This means an extra €200 saving in income tax for these earners.

Total saving: €528

Other

If you have children, there may be some additional savings for you as the government has pledged €20 million to support a number of measures, including an extended free pre-school programme.

But if you are a fan of fizzy drinkscigarettes or sunbeds, you’ll also be paying more for those.

Related: Budget 2018: Here are the main points you need to know>

Read: Have kids? Here’s what Budget 2018 means for parents>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
34 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Mark O'Flaherty
    Favourite Mark O'Flaherty
    Report
    Jun 25th 2012, 4:32 PM

    Emer I”m currently staying with my uncle in Fort Collins, less then three miles from the fire here. He lives just east of Horsetooth damn, the fire is literally just west of there. Since I arrived last Friday, its been 39degrees and there is no moisture around. The fire can be seen for miles, even on the plane into Denver the trail of smoke could be seen for well over an hour in our descent. Again a reminder that despite our troubles at home, we’ve such a benign country in terms of natural disasters etc.

    The air quality is quite poor depending on the wind, but my heart goes out to those displaced. The part of the country is so Idyllic, wonderful communities around. Its such a shame to see the destruction due to the fire. Spare a thought for the firefighters and volunteers battling the fire, I can barely step out in the heat I can’t imagine how they are fighting it with all their gear etc. I have some photos which I’ll submit.

    3
    Install the app to use these features.
    Mute hjGfIgAq
    Favourite hjGfIgAq
    Report
    Jun 25th 2012, 4:40 PM

    Hi Mark, thanks for sharing that. If you could send your pictures to tips@thejournal.ie that would be great.

    1
    Install the app to use these features.
    Mute Mark O'Flaherty
    Favourite Mark O'Flaherty
    Report
    Jun 25th 2012, 5:17 PM

    Will do Emer – thanks.

    2
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds