Ireland – Budget Statement Changes 2025
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On 1 October 2024, the minster of Ministers for Finance and Public Expenditure, NDP Delivery and Reform presented the 2025 budget statement. The following changes have been announced and are due to take effect from 1 January 2025.
Tax Rates and Tax Bands
| Personal Circumstances | 2024 (€) | 2025 (€) |
|---|---|---|
| Single or widowed or surviving civil partner, without qualifying child | 40,000 @ 20% Balance @ 40% | 44,000 @ 20% Balance @ 40% |
| Single or widowed or surviving civil partner, qualifying for single person child carer credit | 46,000 @ 20% Balance @ 40% | 48,000 @ 20% Balance @ 40% |
| Married or in a civil partnership, one spouse or civil partner with income | 51,000 @ 20% Balance @ 40% | 53,000 @ 20% Balance @ 40% |
| Married or in a civil partnership, both spouses or civil partners with income | 51,000 @ 20% with increase of 33 000 max. Balance @ 40% | 53,000 @ 20% with increase of 35,000 max. Balance @ 40% |
As a result of the change in tax rates, emergency tax rates and tax bands will be adjusted as follows:
| Personal Circumstances | 2024 (€) – Cut off point | 2025 (€) – Cut off point |
|---|---|---|
| Where employee provides a PPSN – First 4 weeks | 42,000 @ 20% Balance @ 40% | 44,000 @ 20% Balance @ 40% |
| Where employee does not provide a PPSN – First 4 weeks | 0 | 0 |
| Week 5 onwards – with or without PPSN | 0 | 0 |
Tax Credits
| Personal Circumstances | 2024 (€) | 2025 (€) |
|---|---|---|
| Single person | 1,875 | 2,000 |
| Married or in a civil partnership | 3,750 | 4,000 |
| Employee tax credit / Earned Income tax credit | 1,875 | 2,000 |
| Widowed person or surviving civil partner (without qualifying child) | 2,415 | 2,540 |
| Singe person child carer tax credit | 1,750 | 1,900 |
| Incapacitated child credit | 3,500 | 3,800 |
| Blind tax credit • Single person • Married or in a civil partnership: o one spouse or civil partner blind o both spouses or civil partners blind | 1,650 1,650 3,300 | 1,950 1,950 3,900 |
| Dependent relative | 245 | 305 |
| Home carer tax credit | 1,800 | 1,950 |
Universal Social Charge (USC)
| Personal Circumstances | 2024 | 2025 |
|---|---|---|
| Income up to 12,012 | 0.5% | 0.5% |
| Income from 12,012.01 to 25,760 | 2% | n/a |
| Income from 12,012.01 to 27,382 | n/a | 2% |
| Income from 25,760.01 to 70,044 | 4% | n/a |
| Income from 27,382.01 to 70,044 | n/a | 3% |
| Income above 70,044 | 8% | 8% |
There are no changes to the reduced rates of USC.
Small benefits exemption
- The number of annual vouchers or benefits is increasing from the first two to the first five, and the exemption limit is increasing from €1,000 to €1,500.
Benefit in Kind (BIK) on Employer-Provided Vehicles
The following will apply for BIK on employer-provided vehicles for 2025:
- A reduction of €10,000 will apply to the original market value (OMV), to reduce the amount of BIK payable, for all cars in Category A, B, C and D (not E) and all vans.
Increase in National Minimum Wage for people aged 20 and above
The NMW will increase by 80 cents from €12.70 to €13.50 for people aged 20 and above per hour in respect of hours worked on or after 1 January 2025.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
Employer of Record (EOR) Ireland | PEO Ireland | Payroll in Ireland
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Ireland – 2025 Budget Statement Changes – 1 January 2025
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