A New Year means more money back in Galway peoples’ pockets, with changes under Budget 2025 in effect from yesterday (Jan 1 )
The measures were announced in October and include changes to tax bands, reduced USC, and enhanced tax credits.
Cllr Andrew Reddington said that he is pleased that 2025 will be yet another year which people in Galway will be supported with positive tax changes, putting more money back into their pockets.
“Workers across the county will see the rate at which people pay the higher rate of tax, with the standard rate cut-off point rising by €2,000 to €44,000.
He said that the 2% USC band will increase to €27,382, while the 4% rate will be reduced to 3%. These important changes will result in people in Galway being able to keep more of their own hard-earned money.
A single person on an income over €50,000 per year will pay €859 less in tax compared to last year.m The personal tax credit, the PAYE tax credit, and the earned income tax credit will all see increases by €125, to a total of €2,000.
As part of a range of measures to support and recognise the work of carers, the home carers tax credit will increase by €150 to €1,950. Similarly, the dependent relative tax credit will increase by €60 to €305.
He added that he was pleased that this year, he Government is increasing the inheritance tax threshold for parents to children from €335,000 and €400,000.
“Despite inflation falling, I recognise that many people in Galway are still faced with cost-of-living challenges, and it is vital that we continue to put money back in their pockets through these and other budgetary measures,” he concluded.
