A married couple in PAYE employment with dependent children will see the following changes to their payslips next year:- Reduction is USC rates from 2% to 1.5% and 4% to 3.5% with an additional rate of 8% applicable to incomes over €70,000
- Increase of entry level for USC to €12,012 and entry level to top rate USC to just above minimum wage (estimating €17,577)
- Top rate of Income Tax reduced from 41% to 40%
- Increase in Standard Rate band for highest income earner from €41,800 to €42,800 for married couples
- Up to €500 Tax Relief on Water Charges at Standard Rate of 20% (worth up to €100 per household)
- Child Benefit increased by €5 per child per month for all families (€60 per child per year)
Commentary
A summary of how these changes affect a married couple with 2 dependent children depending on their salary level is outlined below
|
Combined Salary
|
€26,500
|
€34,500
|
€35,000
|
€55,000
|
€58,500
|
€70,000
|
€115,000
|
|
Spouse 1
|
€18,000
|
€26,000
|
€35,000
|
€55,000
|
€50,000
|
€35,000
|
€80,000
|
|
Spouse 2
|
€8,500
|
€8,500
|
€0
|
€0
|
€8,500
|
€35,000
|
€35,000
|
|
|
|
|
|
|
|
|
|
|
Income Tax
|
-
|
-
|
-
|
€332
|
€282
|
€444
|
€894
|
|
Tax Credits
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
USC
|
€174
|
€174
|
€174
|
€174
|
€174
|
€348
|
€248
|
|
Water Charges
|
€55
|
€55
|
€55
|
€55
|
€55
|
€55
|
€55
|
|
Child Benefit
|
€120
|
€120
|
€120
|
€120
|
€120
|
€120
|
€120
|
|
|
|
|
|
|
|
|
|
|
Total Saving
|
€350
|
€350
|
€350
|
€682
|
€632
|
€968
|
€1,318
|
Figures provided by Red Oak Tax Refunds
