I’m earning €65,000 a year. Will I be better off as a result of Budget 2022?

There will be three main changes in Budget 2022 that will affect your take home income after tax next year.

Firstly, the point at which you start to pay tax at the higher rate of 40% will be increased by €1,500 from €35,300 to €36,800 saving you €300 per year.

Also, the Personal Tax Credit and Earned Income Tax Credit have each been increased to €1,700 saving you a further €100 per year.

Finally, some small movements on the USC bands will save you a further €15.

That’s a tax saving of €415 in 2022 or roughly €8 per week.

The above analysis is relevant for a single self-employed person with no children.

 

 

Date published 12 Oct 2021

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.