Highlights
- Widening of lower rate tax band by €750
- Reduction of USC rates from 2.5% to 2% and 5% to 4.75% and increase in the second rate band
- Home Carers Tax Credit increased by €100
- Earned Income Credit increased by €200
Comments
The changes will mean that a single person earning €30,000 p.a will benefit to the tune of €78 p.a from the USC changes.
A single person on €34,550 is currently paying tax at the higher rate on some of their income and will see an increase in their take home pay of
€150 Tax + €89 USC = €239 p.a.
A married couple with one earner and who qualify for the Home Carers Tax Credit will see an increase in their take home pay of €100 p.a. in addition to the additional amounts due as a result of the USC changes and the rate band changes (if applicable)
The self employed will save an extra €200 tax as a result of the increase in the Earned Income Credit in addition to the increases mentioned above.
These measures take effect from 01 January, 2018
The figures mentioned above are merely indicative. The actual figures may vary depending on the individual’s circumstances.