Budget 2025 - Income Tax Calculator Assumptions for Ireland

Understand the Calculations Behind Your Net Income Estimate

Calculate Your Net Pay

How We Calculate Your Net Pay

This calculator is intended for general informational purposes only. It is recommended to seek professional advice tailored to your specific circumstances.

Our Income Tax Calculator for 2025 uses the latest tax data, including Budget 2025 updates.

The assumptions and rates applied in calculation

Employee PRSI Rates:
  • 2025 composite rate of 4.1%, reflecting mid-year rate adjustments. The calculator applies the PRSI rate for combined income when married, however, for anyone of your age above 65 there is no PRSI being applied. 
Universal Social Charge (USC) Bands:

The standard rates apply based on the following income bands:

  1. 0.5% on income up to €12,012.
  2. 2% on income between €12,013 and €27,382.
  3. 3% on income from €27,383 to €70,044.
  4. 8% on any remaining income over €70,044.

“Our calculator applies these USC bands progressively to give you a precise view of your USC liability. In terms of married two earners, the USC rate is being applied on total annual combined income including your spouse’s income”

Updated Tax Credits for 2025:
  • Personal Credit: €2,000
  • PAYE Credit: €2,000
  • Married Credit: €4,000
  • Home Carer’s Credit: €1,950

 “Credits vary based on individual status, family composition, and other factors, reducing your tax liability effectively.”

Tax Credits for Special Cases

  • Tax Credits for Single and Single Parents: For individuals with single status, the calculator applies a total tax credit of €4,000, which includes the Personal Tax Credit and Employee Tax Credit. A total tax credit of €5,900 is applied for single parents, incorporating the Single Parent Child Carer Credit for dependent children.
  • Married One Earner Tax Credit: For users identified as married with one income earner, the calculator applies a tax credit of €7,950, which includes the Home Carer Tax Credit.
  • Married Two Earners Calculations: The calculator treats income as jointly assessed for married couples with two incomes, applying a 20% tax rate on the first €88,000 of combined income and a total tax credit of €8,000.
  • Definition of a Dependent Child:
    • Home Carer Tax Credit: A dependent child is defined as a child for whom Social Welfare Child Benefit is payable, which includes all children under 16 and those under 19 in full-time education.
    • Single Parent Child Carer Credit: A dependent child refers to a child under 18 at the beginning of the tax year or a child in full-time education if over 18.
  • Rent Tax Credit: If the renting option is selected, the calculator applies a rent tax credit of €1,000 for single individuals and €2,000 for married couples.
  • Dependent Relative Tax Credit: A tax credit of €305 is applied for a dependent relative. Note that this credit could be higher if more than one dependent relative is cared for, potentially up to four times this amount for couples looking after four eligible dependents, even if they reside abroad.
  • Eligibility for Additional Tax Credits: Depending on your unique situation, you may qualify for additional tax credits that could increase your net pay. This calculator provides a basic estimate. For a detailed review and free consultation on eligibility, please contact us. For example, the Incapacitated Child Tax Credit of €3,800 for 2025 (or €3,500 for 2024) is available for a parent or guardian of a child who is permanently incapacitated.
    • If more than one child is permanently incapacitated, you may claim a credit for each child. If more than one person maintains a child, the credit is divided among them. The calculator does not automatically include this credit.
  • Medical Expenses Tax Credit: You may claim a tax credit for eligible medical expenses that you have personally paid, which is calculated at 20% of the qualifying expenses. This credit cannot be claimed for expenses reimbursed through insurance or other means. For a detailed list of qualifying expenses, please refer to the Revenue website (Health expenses).
  • Blind Person’s Tax Credit: Individuals who are blind or have impaired vision may claim a Blind Person’s Tax Credit of €1,950 for 2025 (or €1,650 for 2024). To claim this credit, a certificate from an eye specialist must be submitted to Revenue.

Ready to see your potential take-home pay for 2025?

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