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middle earners
What the Budget means for someone earning around €40,000
How does this change things for you?
NOW THAT THE weeks of speculation are over, and this year’s Budget has been announced, let’s get specific about what it means for you.
If you’ve been making €40,000 or so, here’s how it breaks down.
Adjustments to the Universal Social Charge (USC) mean an extra €472, or €9.44 more a week.
This comes from Finance Minister Michael Noonan lowering the rates from 1.5 to 1%, 3.5 to 3%, and 7 to 5.5%.
But if you’re self-employed, the earned income tax credit of €550 can be added to that.
Changes to the Home Carer Tax Credit will mean an extra €190 a year for single income families.
If you have children, you’ll get an extra €5 a month from the child benefit, which is being increased from €135 to €140.
And if you have young children, you’ll likely benefit from the new provision of free childcare from the age of three up to five and a half, or until primary school.
The 0.15% pension levy fund has also been abolished.
If you smoke 20 cigarettes a day, you’ll be spending an extra €182.50 over the next 12 months, after the 50 cent hike in the price of a pack.
For a detailed and comprehensive breakdown of how the Budget will impact your individual circumstances, check out our Budget Calculator.
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