I’m earning €70,000. Will I be better off as a result of Budget 2025?

According to our calculations, if you are self-employed, earning €70,000 a year, you will be approximately, €1,300 better off in the year 2025, compared to the year 2024. 

This is due to an increase in the income tax band, the main tax credits, and an alteration to the Universal Social Charge in Budget 2025. The minister increased the standard rate band by €2,000, being the point up to which you pay tax at the lower rate of 20%. 

The Personal and Earned Income Tax Credits increased by €125. The Home Carer Tax Credit increased by €150 (from €1,800 to €1,950). The USC rate of 4% has been cut to 3% and the entry point into which you pay USC at the 3% rate has been increased. 

The above analysis is relevant for a married couple with one income and with a dependent child.

 

 

 

Date published 1 Oct 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.