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Budget Calculator
Here's what Budget 2023 means for your payslip if you're earning €30,000
Changes to tax credits and USC mean you’re about to pay less tax.
BUDGET 2023 IS out now, and with it, a range of changes to taxes charged on income.
Minister for Finance Paschal Donohoe announced an increase in tax credits, a higher threshold for the PAYE’s upper tax band, and minor adjustments to PRSI and USC.
The measures will affect people differently depending on their income. You can find out what exactly they mean for you with The Journal’s Budget Calculator.
For a person earning an annual income of €30,000, here’s a breakdown of how your tax will change.
We’ll also be bringing you examples of what it means for people earning €40,000, €60,000 or €100,000, as well as our full Budget coverage on Government spending, social welfare, and other changes.
PAYE
The main change to PAYE in this year’s Budget is that the entry point for the higher tax band rate has been increased by €3,200, meaning a smaller proportion of income will be subject to the higher tax rate.
However, that shift will not affect a single person earning €30,000 as at that level of income, no earnings are taxed at the higher rate.
Personal tax credits and employee tax credits are increasing by €75 each, bringing both to €1,775.
That means savings on PAYE for a single person earning €30,000 will amount to zero from PAYE changes and €150 from changes to credits.
PRSI
Changes to PRSI in Budget 2023 will not affect this income level. PRSI for a single person earning €30,000 will remain at €1,200, giving zero savings here.
USC
Some minor adjustments are being made to the USC to account for the rise in the minimum wage.
The ceiling of the second USC rate band is increasing from €21,295 to €22,920.
That means USC tax on an income of €30,000 would be charged as follows:
- 0.5% on the first €12,012 = €60
- 2% on the amount between €12,012 and €22,920 = €218
- 4.5% on the remainder up to €30,000 = €319
It gives a total annual USC payment of €597, a saving of around €41 compared to 2022.
Total
Across the three taxes, the changes in this year’s Budget will bring a reduction of €191 for a single person.
For a married person, total savings could be up to €265, depending on whether you and your partner file your taxes together or separately and whether your household has one or two incomes.
Use The Journal’s Budget Calculator to find out what exactly the changes mean for you.
