Legislative Changes for the Tax Year 2025

Here's the summary of legislative changes for Ireland for the tax year 2025.

Legislative updates 2025

Item	Updates
Income Tax Rates and Thresholds	The Standard Rate Cut-off Point has increased from €42,000 to €44,000 effective January 1, 2025. The annual basic tax credit has increased to € 2000 per year for the tax year 2025.
Universal Social Charge (USC)	USC rates are reducing, the 4 % rate has reduced to 3 % effective January 1, 2025. The exemption threshold of €13,000 remains unchanged.
Pay Related Social Insurance (PRSI)	The thresholds for Sub Class AL and Sub Class A1 have changed as a result of the increase in the National Minimum Wage effective January 1, 2025.
Benefit In Kind (BIK Small Benefit Exemption)	From January 1, 2025, the number of annual vouchers or benefits has increased from the first two to the first five, and the exemption limit has increased from €1,000 to €1,500. The exemption will cease to apply for tax year 2030 and subsequent years.
National Minimum Wage	Effective January 1, 2025, the adult National Minimum Wage rate has increased from €12.70 to €13.50 per hour.

Stay compliant with legislative changes introduced for the tax year 2025 with the prescribed changes to rates, thresholds and percentages for Income Tax, Universal Social Charge, Pay Related Social Insurance, Benefits In Kind, and all other changes that will be effective from January 1, 2025.

Steps to Enable

You don't need to do anything to enable this feature.