Pay As You Earn (PAYE)
 

• There is no change to tax rates for 2025 - the standard rate will remain at 20% and the higher rate at 40%
   
• The Standard Rate Cut Off Point (SRCOP) remains at €44,000.
  
   
• The Personal Tax Credit remains at €2,000
  
   
• The Employee Tax Credit remains at €2,000
   

Earned Income Tax Credit
 

• The Earned Income Credit remains at €2,000

Universal Social Charge (USC)
 

• Exemption threshold remains at €13,000
   
• The 2% USC rate band has been increased by €1,622, from €25,760 to €28,700

• For 2026, USC will apply at the following rates for those earning in excess of €13,000:

0.5% - Income up to €12,012

2% - Income from €12,012.01 to €27,800

3% - Income from €27,800.01 to €70,044

8% - Income above €70,044

• Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%. This concession has been extended until 31st December 2027.
   
• The emergency rate of USC remains at 8%.
   
• Non-PAYE income in excess of €100,000 will continue to be subject to USC at 11%.

National Minimum Wage
 

• The National Minimum Wage will increase by €0.65 from €13.50 to €14.15 per hour from January 1st 2026.

Pay Related Social Insurance (PRSI)
 

• All PRSI contribution rates will be increased by 0.1% in October 2026.

Social Welfare

• There will be a €10 increase in all weekly Social Welfare payments with effect from January 2025. The maximum personal rate of Illness Benefit will be increased to €254 per week. Maternity Benefit, Parent’s Benefit and Paternity Benefit will be increased to €299 per week.

Extension of BIK Exemption for Electric Vehicles

• The BIK exemption for battery electric vehicles will be extended out to 2026 with a tapering effect on the vehicle value. This measure took effect in early 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023, 2024 and 2025, by €30,000 in 2026 (made up of a €20,000 EV-specific reduction and a €10,000 universal reduction for all vehicles), and by €15,000 in 2027.