Many workers in Ireland are going to enjoy higher rates of tax credits as the government announced amendments to the existing tax policies in Budget 2022. According to the report by the Irish Mirror, the new changes will greatly benefit common people as the plans to boost lower income tax bands take effect.
The standard rate income tax band was increased by €1,500 – meaning that anyone earning up to €36,800 will pay tax at the basic 20% rate.
Meanwhile, married couples or civil partners with one earner will not enter the higher 40% tax bracket until their income reaches €45,800.
Savings range from €415 to €830 per year, depending on each person’s situation with work, family, and housing.
For a single person who is employed, earning €45,000, and is a property owner, they will see savings of €415 per annum thanks to a:
- Change in tax bands of €300
- Change to tax credits of €100
- Change to Universal Social Charge of €15
For a married couple who are property owners, one person is employed and earning €50,000, they can expect a net saving of €465 due to a:
- Change in tax bands of €300
- Change to tax credits of €150
- Change to Universal Social Charge of €15
There will be greater savings for a married couple who are property owners, with one earning €150,000 and other €30,000 due to a:
- Change in tax bands of €600
- Change to tax credits of €200
- Change to Universal Social Charge of €30
Unmarried couples who are living together and renting, with one person earning €80,000 and the other €35,0000 will save €530 per year, due to a:
- Change in tax bands of €300
- Change to tax credits of €200
- Change to Universal Social Charge of €30
Married couple with one child and who are both working with one earning €250,000 and the other earning €90,000 will save €830 a year due to a:
- Change in tax bands of €600
- Change to tax credits of €200
- Change to Universal Social Charge of €30