Income tax band will increase by €2,000

The Government announced an increase in the standard-rate cut off point for a single person from €42,000 to €44,000 in Budget 2025.

This means that PAYE workers can earn up to €44,000, before they start to pay the higher 40% income tax rate.

Minister for Finance Jack Chambers announced a total income tax package of €1.6bn, as part of Budget 2025, which was announced to the Dáil on Tuesday.

Personal tax credit

The personal tax credit, the PAYE and earned income credit are also to increase by €125 in 2025.

The USC middle rate has been reduced from 4% to 3%, while the 2% USC ceiling band has increase from €20,484 to €27,382.

Parents will receive two double payments of child benefit before Christmas, worth €280 each, as well as a once-off triple child benefit payment of €420 for new parents.

In addition to this, the carer tax credit will be increased by €150, offering support to people who care for a person with an illness or disability.

The single person child carer credit will rise by €150.

This move is aimed at helping single parents who are raising children on their own.