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Oct 7, 2024 3 min read

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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Ireland – Budget Statement Changes 2025

Tax Rates and Tax Bands

Tax Credits

Universal Social Charge (USC)

Small benefits exemption

Benefit in Kind (BIK) on Employer-Provided Vehicles

Increase in National Minimum Wage for people aged 20 and above

View PDF

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