Budget 2018 Changes to Income Tax
As expected there were some small reductions to Income Tax in Budget 2018.
In January 2018 there will be an increase of €750 in the income tax standard rate band for single earners, from €33,800 to €34,550 .
The married couples band will rise from €42,800 to €43,550
For a single earner – these changes will mean an increase in take home pay of €150 a year on a salary of €35,000. (Tax of €3940 reduced to €3790)
Someone on €55000 will also see a fall in tax of €150 a year
A couple with one earner on €55000 will also see income tax fall from €8490 to €8340 – a drop of €150 a year.
It’s interesting to note that, with Pensions and Welfare payments going up by €260 a year, a single worker on €25000 a year will see just a €66 annual take home pay increase after USC and Tax cuts. A working person will have to be on €45000 a year to see an annual rise in take home pay of €260.
There will be an increase in the Home Carer Tax Credit from €1,100 to €1,200
Self employes tax payers will see a rise in the Earned Income Credit from €950 to €1,150