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 will now be 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. (Currently €49,-000)
The following tax credits will increase 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 is rising by €2,840 from €22,920
to €25,760.
The 4.5% rate of USC is being 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)