Budget 2015: Finance Minister Michael Noonan delivered his budget 2015 speech to Dail Eireann on 14 October 2014, below is a brief summary of changes affecting your Payroll for 2015!
Income Tax Rate The higher income tax rate has been reduced from 41% to 40%.
Statndard Rate Cut-off The standard rate band has been increased by €1,000 to €33,800 for a single person.
Universal Social Charge:
USC entry point
has been increased to just over €12,000.
2% USC rate
has been decreased to 1.5%
4% USC rate
has been decreased to 3.5%
NEW 8% USC rate
for those earning over €70,000
NEW 11% USC rate
for self employed income over €100,000
Retaining the exemption from the top rate of USC for medical card holders earning less than €60,000 and these individuals will now only be liable to a maximum USC rate of 3.5%. This rate of USC is also the maximum that will apply to the over-70s who have incomes lower than €60,000.
A part-time worker earning €12,000 will continue to face no income tax and now no USC charge
A minimum wage worker will now face a maximum USC rate of 3.5%.
A working family with three children where both parents earn €50,000 each will have an additional €100 per month in their pocket.
All employees with incomes in excess of €70,000 will continue to face a marginal tax rate of 52%.
These changes enhance the progressivity of our income tax system with the top 1% of income earners now paying 21% of all income tax and USC collected. In contrast, the bottom 76% of income earners will pay 20% of the total.
Further updates and clarity of changes announced will be published here as we get them.