Income Tax Cut For Some – Budget 2018

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


6 thoughts on “Income Tax Cut For Some – Budget 2018

    • No Rob – but anyone getting working age benefits such as Jobseekers , Invalidity will get an increase of €2 a week per child on top of the general €5 a week increase.

  1. Does it mean that if you are single you get €750 more, but if you are married you only get €375 each?

    • That’s right €750 increase for the couple – but teh threshold is higher for a couple.

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