Effect of Budget 2024 on Take-Home Pay

There were some USC and Income Tax changes announced in Budget 2024  and they will take effect from January 1st 2024 .

From January 1st 2024 there will be an increase of €2000 in the income tax standard rate cut-off point for all earners, from €40,000 to €42,000 for single individuals and from €49,000 to €51,000 for married couples / civil partners with one earner.


This means that for single people – the first €42,000 of earnings are now taxable at the lower 20 per cent rate . (It is currently €4000).

From January 2024 – Married couples or civil partners with one earner will not enter the higher 40 per cent tax bracket until their income reaches €51,000. (Was €49,-000)

The following tax credits increased from Jan 1st 2024

  • An increase of €100 in the Personal Tax Credit from €1,775 to €1,875
  • An increase of €100 in the Employee Tax Credit from €1,775 to €1,875
  • An increase of €100 in the Earned Income Credit from €1,775 to €1,875
  • An increase of €200 in the Home Carer Tax Credit from €1,700 to €1,900

USC Changes 2024

The ceiling for the 2% rate of USC rose by €2,840 from €22,920
to €25,760.
The 4.5% rate of USC was cut by 0.5% to 4.0%. . This rate applies to income between €25,761 and €70,044

But just how much will these tax and USC changes increase your Take Home Pay in 2024 ?

Take-home pay for a single earner will rise by a maximum of €892 a year and a maximum of €992 for a couple with one earner.


Some examples of the 2024 increases in take-home pay for various annual salaries.

Single Earners


Gross
Annual
Salary

Net Monthly
Pay 2023
Net Monthly
Pay 2024
Annual
Increase

2024
€30000€2146€2170€292
€35000€2444€2444€317
€40000
€2742€2770€342
€55000€3385€3458€817
€65000€3814€3887€867
All incomes
€75000 plus
…..…..€892


Couples (one earner)

Gross
Annual
Salary

Net Monthly
Pay 2023
Net Monthly
Pay 2024
Monthly
Increase

2024
Annual
Increase

2024
€35000€2592€ 2626€34.75€417
€45000 €3188€3227€38.92€467
€75000€4527€4609€82.66€992
All incomes
€75000 plus
…..…..€82.66€992



A single PAYE worker on €40000 will see a €342 annual increase in take-home pay in 2024.

(Note- Pensions and social welfare for a single person will go up by €624 a year in 2024). (€12 a week)