Budget 2022 Income Tax Changes and Take Home Pay

There were some USC and Income Tax changes announced in Budget 2022  and they will took effect from January 1st 2022 .

The standard rate income tax band for single earners was increased in January 2022 by €1,500. This means that the first €36,800 of earnings will now be taxable at the lower 20 per cent rate . (It is currently €35,300).

From January 2022 – Married couples or civil partners with one earner will not enter the higher 40 per cent tax bracket until their income reaches €45,800. (Currently €44,300)

The following tax credits increased by €50 from Jan 1st 2022

  • Personal Tax Credit
  • Employee Tax Credit
  • Earned Income Tax Credit
  • Widowed Person or Surviving Civil Partner (without dependent child) Tax Credit

But just how much will these tax changes increase your Take Home Pay in 2022 ?
The changes will be so small – most people probably won’t even notice them.

Some examples of the 2022 increases in take-home pay for various annual salaries.

( Single Earner – Figures rounded to the nearest Euro)


Net Monthly
Pay 2021
Net Monthly
Pay 2022


All incomes
€37000 plus

All PAYE workers on €37000 or more will see a €415 annual increase in take-home pay in 2022.

For PAYE workers , after the 2022 tax changes and USC changes , a single person on €27000 salary a year will see just a €115 annual take-home pay increase.
(Note- Pensions and social welfare for a single person will go up by €260 a year in 2022). (€5 a week)

A single working person will have to be earning at least €36000 a year to see an annual rise in take-home pay of €260 in 2022.