€150 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.

From January 1st 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 – also drop of €150 a year.

It’s interesting to note that Pensions and Welfare payments went up by €260 a year.
in 2018 – after USC and tax changes , a single worker on €25000 a year will see just a €66 annual take home pay increase.
A working person will have to be on €45000 a year to see an annual rise in take home pay of €260 in 2018.


Other Tax changes in 2018

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

 

7 thoughts on “€150 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.

  2. How much increase would I get if I work 2 pays 8hours and am on casual workers allowance.

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