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Budget 2027
Earn €30k, €45k, €60k or €90k? Here's what the budget means for these incomes
Let’s do some sums.
BUDGET 2027 HAS officially been announced, with some tweaks to tax credits and a change to income tax.
Specifically, Minister for Finance Simon Harris announced the following income-related measures this afternoon:
- Increased entry to higher tax rate for PAYE workers (from €44,000 to €46,500).
- Increased entry to the 3% USC band (from €28,700 to €30,300)
- Increase of €125 in the main tax credits (Personal, Employee, and Earned Income)
The measures will affect people differently depending on their income or personal circumstances. You can find out what exactly they mean for you with The Journal’s Budget Calculator.
But just to pull out a couple of examples based on differing incomes, here’s what the changes look like in practice.
A single PAYE worker on €30,000
The change in the entry rate of the higher rate of tax makes no difference to a worker on €30,000, so their income tax saving here is: €0 saving annually.
The tweak in the USC bands reduces this burden marginally: €13 saving annually
This person will benefit from two increased tax credits: €250 saving annually.
Total annual saving: €263
A single PAYE worker on €45,000
The change in the entry rate of the higher rate of tax makes a bit of a difference here, with the worker on €45,000 set to have more of their pay taxed at the lower rate.
Income tax: €200 saving annually
The tweak in the USC bands also reduces the burden here: €16 saving annually.
This person will benefit from two increased tax credits: €250 saving annually.
Total annual saving: €466
A single PAYE worker on €60,000
The change in the entry rate of the higher rate of tax kicks in here, with the person paying more tax at the lower rate: €500 saving annually.
The tweak in the USC bands also reduces the burden here: €16 saving annually
This person will benefit from two increased tax credits: €250 saving annually.
Total annual saving: €766
A single PAYE worker on €90,000
This person will benefit from precisely the same changes as the above example.
As the headline tax rates are not changed, this person will not benefit any more even though they have a higher wage.
Instead, they will benefit from having an additional €2,500 taxed at the lower rate.
Income tax: €500 saving annually.
USC saving: €16 saving annually
Tax credits: €250 saving annually.
Total annual saving: €766
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