Brendan Burgess
Founder
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Main tax credits by €125
SCor to €44,000
USC being reduced from 4% to 3%
SCor to €44,000
USC being reduced from 4% to 3%
All three - going to €2K.Personal credit only or are the PAYE credit and Earned Income credit also being increased by €125 as well?
Single Parent Child Carer credit up from €1,750 to €1,900.Minister for Finance Jack Chambers has announced increases to the main tax credits - the personal, employee and earned income credits - by €125, along with raising the national minimum wage to €13.50 as part of Budget 2025.
Tax measures
- €125 Increase in the Main Tax Credits
- €2,000 Increase in the Standard Rate Cut-off Point
- €150 Increase in the Home Carer Tax Credit
- €150 Increase in the Single Child Carer Credit
- €300 Increase in the Incapacitated Child Tax Credit
- €300 Increase in the Blind person Credit
- in the USC middle threshold by €1,622
- reduction in the 4% USC rate to 3%
- increase in the Rent Tax Credit from €750 to €1,000
- increase in the Excise Duty and VAT on a pack of cigarettes by €1
- VAT on Heat Pumps decreased to 9%
- Sea-going Naval Personnel Tax credit extension
Ah - I was just going to ask why all of the tax calculators updated for Budget 2025 were calculating PRSI to be slightly higher for 2025 than for 2024...PRSI up 0.1% to 4.2% from Oct 2025
(it also went up from 4% to 4.1% today, as announced last year)
Bug bear of mine for multiple budgets. They also always incorrectly use the term ‘proportionally’ every time. They’re eroding any tax benefit to being married massively over time.Why does the SRCOP for two single incomes go from 42k to 44k each, but a jointly-assessed couple goes from 51k to just 53k - I thought they specifically said "applied proportionally"????
EDIT - for dual-income couples, the increase of 33k or the amount of lower income has gone to 35k. Single income families are pretty much screwed over with just a move from 51k to 53k, same as a single.
Not just single-income households, but dual-income households with one smaller sub-35k income also!Bug bear of mine for multiple budgets. They also always incorrectly use the term ‘proportionally’ every time. They’re eroding any tax benefit to being married massively over time.
It’s a sneaky tax increase on single income households which 99% wouldn’t even notice.
For me the large USC reduction is just to reduce the impacts of SF 'outrage' against USC, nothing more.What's the point in reducing USC if they're upping PRSI??? One hand giveth etc...
Tables 2 onwards here are excellent to show percentage tax reduction by cohorts. As expected this is really a budget for middle income earners (€45k-€70k) with children.
Doesn't work in LibreOffice Calc unfortunately.In case it's helpful to anyone, I've updated my Excel spreadsheet for 2025: https://taxcalc.eu/monthlyss/Employee PAYE calculator.xlsm
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