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What the Budget means to someone earning around €50,000

How does this change things for you?

shutterstock_201240257 Source: Shutterstock/Andrey_Popov

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 about €50,000 or so, here’s how things will change for you next year.

Income Tax

The lower and higher rates of income tax are staying the same, so even if you’re edging up into the higher bracket there’s no change there.

But if you’re self-employed, there’s an additional tax credit on the way that you’ll benefit from to the tune of  €550 for the year.

Saving: €550 if you’re self-employed

USC

Whether you’re PAYE or self-employed, this is where the main thrust of the savings will come from.

If you’re earning €30,000, you’re currently paying USC across the top three rates, totalling about €2,650 a year.

Each of these top three rates have now been reduced, the bottom two by 0.5% and the third rate by 1.5%. The USC situation is now:

On the first €12,012 = 1%
Up to €18,668 = 3%
Up to €70,044 = 5.5%
It means that your USC payments next year will now total about €2,043.
Saving: €602

Child benefit

If you have children, you’ll get an extra €5 a month from child benefit, which is being increased from €135 to €140.

Increase: €60

For a detailed and comprehensive breakdown of how the Budget will impact your individual circumstances, check out our Budget Calculator

Read: What the Budget means for someone earning around €20,000 >

Read: What the Budget means for someone earning around €30,000 >

Read: All the breaking news from today’s Budget >

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About the author:

Rónán Duffy

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