Budget 2025

Universal Social Charge (USC)

From 1 January 2025, the minimum wage will rise to €13.50 per hour. To prevent higher USC rates from affecting this increase, the government is raising the upper limit of the 2% USC band by €1,622, making the new limit €27,382. Additionally, the USC rate on income up to €70,044 will drop from 4% to 3%.

Income Tax Bands
The higher rate of income tax will apply later, with the threshold increasing by €2,000 for all earners starting 1 January 2025. For single individuals, the cut-off will rise to €44,000. This adjustment will provide annual savings of up to €400 for individuals and up to €800 for married couples/civil partners.

Tax Credits
In 2025, personal, employee, and earned income tax credits will increase by €125, bringing them to €2,000 each. Home carer and single person child carer tax credits will each rise by €150. The incapacitated child and blind person’s tax credits will see a €300 increase, while the dependent relative tax credit will go up by €60.