Saturday 20 October 2018

Something for everyone? The budget changes that came into effect on Jan 1

Minister for Finance Paschal Donohoe with Budget 2018. Photo: INM
Minister for Finance Paschal Donohoe with Budget 2018. Photo: INM
Independent.ie Newsdesk

Independent.ie Newsdesk

As the new year begins, many of the measures that Finance Minister Paschal Donohoe announced for Budget 2018 come into effect on January 1.

In October Taoiseach Leo Varadkar proudly announced that the government has balanced the books for the first time in a decade, as he said: "It is a budget I am happy to be associated with."

He also said that there is "something for everyone", so how do these changes impact on your wallet?

These are the changes that kick in today:

  • A €750 increase in the income tax standard rate band will mean that a single earner will be able to earn up to €34,550 before moving from the 20pc rate to the 40pc rate
  • The entry point for the higher tax rate for married single-income earners has increased from €42,800 to €43,500
  • Minimum wage has increased from €9.25 to €9.55
  • The prescription charge for medical card holders aged under 70 has been cut from €2.50 per item to €2 and the monthly cap has been reduced from €25 to €20
  • The 2.5pc USC has been reduced to 2pc
  • The 5pc USC rate has shrunk to 4.75pc
  • Earned Income Tax Credit has been boosted from €950 to €1,150

Online Editors

Editor's Choice

Also in Irish News