BUDGET MEASURES ANNOUNCED today mean an increase in the take home pay of workers at different levels across Ireland.
Finance Minister Paschal Donohoe announced a reduction in one of the USC rates, an increase in the ceiling on the standard rate of income tax as well as increases in a number of tax credits.
But what does Budget 2019 mean for your bank balance next year?
If you are earning around €100,000, here’s what will change.
Private and public sector workers
Finance Minister Paschal Donohoe announced today that the point at which an earner attracts the higher rate of income tax will rise next year by €750, from €34,550 to €35,300.
For those earning more than €100,000 that’s a saving of €150.
As for the Universal Social Charge (USC), it was announced that the third rate will be reduced from 4.75% to 4.5% while the second rate of the USC will be increased from €19,372 to €19,874.
Speaking in the Dáil today, the minster said these measures are aimed at giving “a further targeted benefit to low and middle-level incomes”.
These changes will apply from 1 January 2019.
If you’re earning €100,000 you’re paying USC across all four USC rates, totaling €5,011.
Next year, here’s how it will play out for you:
That’s a total of €4,871.78 and a saving of €140.
Overall saving: €290
Self-employed workers:
If you are self-employed and currently earning €100,000, you will benefit from the €150 income tax saving and the €140 USC saving detailed above.
However, the minister announced a €200 increase in the Earned Income Credit today which will benefit 150,000 self-employed people in Ireland.
This means an extra €200 saving in income tax for these earners.
Total saving for self-employed person: €490
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