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BUDGET 2025 HAS officially been announced, with a range of one-off payments and some changes to taxes charged on income.
Minister for Finance Jack Chambers announced a number of changes to tax this afternoon, including an increase to the entrance to the higher rate of tax for PAYE workers (from €42,000 to €44,0000).
The measures will affect people differently depending on their income. You can find out what exactly they mean for you with The Journal’s Budget Calculator.
For a person earning an annual income of €40,000, here’s a breakdown of how your tax will change.
We’ll also breaking down what it means for people earning €20,000, €60,000 and €100,000 as well as our full Budget coverage on government spending, social welfare, and other changes.
The changes to PAYE will only affect people earning over €42,000, as the threshold has been raised to €44,000.
If you are earning €40,000 a year, you are already paying the lower rate of tax and so there will be no difference.
Personal tax credits and employee tax credits are increasing by €125 each.
That means savings on PAYE for a single person earning €40,000 will amount to zero from the PAYE changes and €250 from changes to credits.
Changes to USC have also been announced with the 4% rate cut to 3% on incomes between €25,000 and €70,000.
So for a person earning €40,000 there will be a saving of €159.
The tax savings for people on €40,000 will be €409.
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Carbon Tax increases wipe any advantage out, More EU best in class Budgeting
@087 bed: How so are you planning on burning it?
@Ghislain Hofman: I will be driving a car so will be paying more for my diesel .
@Eileen Hennessy: Electric Motorbikes are the way forward now. Or maybe a skooter?
This is the band of people shafted every year. So the rich get €1000 increase(granted they have worked for it), unemployed got €624 basic increase before all their other entitlements are taken into account, but those working their arses off for €40000 and really struggling, get €409! Gov priorities are all wrong once again!!
@NotMyIreland: someone on the average wage of 48k is 1,000 better off
@NotMyIreland:
People earning below €30k get less.They get 258 euro only.KPMG stating most people better off by 1000 a year.People eqrning 30k are struggling alot more than those on over 40k pal.
How about giving workers a tax free paycheck at xmas ,
€409…. basically €8 a week. Thanks for nothing. Might be able to afford one pint in Temple Bar. What a joke.
@Steve Davis: plus energy credits, and if you have children more in terms of child benefit, expansion in school meals, public transport savings, college fee reductions etc.
@Pat Hazzard: yes if your children are too old and you are working middle income nothing. The 250 euro electric credit will be gone with the increased bills. Diesel, petrol gone up.
@Eileen Hennessy: don’t forget the new esb levies 140 a year for upgrade of grid
Means we as tax payers get nothing same shit
€400. Wouldn’t pay for 2 night BBD. Where’s my 2k out of the Apple slush?
have your say