The USC and Income Tax cuts announced in Budget 2019 will take effect from January 1st 2019 .
But just how much will your Take Home Pay Increase in 2019 ?
The changes will be so small – many people probably won’t even notice them.
Here is a table with some examples of the increases in take home pay for various annual salaries.
( Single Earner – Figures rounded to the nearest Euro)
It’s interesting to note that Pensions and Welfare payments went up by €5 a week or €260 a year in March 2018 and will go up by the same amount in March 2019.
For workers , after the 2019 USC and tax cuts , a single person on €25000 salary a year will see just a €27 annual take home pay increase.
A single working person will have to be earning at least €60000 a year to see an annual rise in take home pay of €260 in 2019.
Here are some figures from Budget 2019 comparing the various areas of spending .
- Total spend on increases to Social Welfare in 2019 €361.6 Million.
(This includes €265 million on the Christmas Bonus.)
- Total combined reduction in Income Tax and USC for 2019 : resulting in €291 million total increase in take home pay for workers. (€105m USC ; €138m Tax Band Changes ; €21m Home Carer credit and €27m Self Employed Tax Credit.)
More here about those €5 a week Welfare Increases in 2019
Summary of USC Rates in 2019
Incomes of €13,000 are exempt. Otherwise:
€0 – €12,012 0.5%
€12,012 – €19,874 2%
€19,874 – €70,044 4.5%
€70,044 plus 8%
Self -employed income over €100,000 : 3% surcharge