Readers like you keep news free for everyone.

More than 5,000 readers have already pitched in to keep free access to The Journal.

For the price of one cup of coffee each week you can help keep paywalls away.

Support us today
Not now
Wednesday 4 October 2023 Dublin: 15°C
# Savings
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


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>

Your Voice
Readers 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
    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