Budget Changes to PAYE Tax Rates Ireland 2025 Explained
Each Budget in Ireland can bring changes to PAYE tax rates, bands, and credits. Understanding these changes helps you see what you're entitled to each year—and ensures you're claiming the right amounts when you file for refunds.
Our specialists stay current with all Budget changes and apply the correct rates when calculating your refund. Here's what you need to know about how Budget changes affect your tax.
📊 PAYE Tax Rates 2025
- Standard rate: 20%
- Higher rate: 40%
- Personal Tax Credit: €2,000
- Employee Tax Credit: €2,000
What Changes in Budgets?
Tax Credits
The Personal and Employee credits have increased over the years. Budget changes affect the credit amounts for each year—which matters when you claim for multiple years.
Standard Rate Cut-Off Point
This is the income threshold where you move from 20% to 40% tax. Changes here affect how much you pay at each rate. For 2025, single people pay 20% on the first €44,000, then 40% above that.
New Reliefs
Recent Budgets have introduced new reliefs like the rent tax credit. These can be claimed for the years they apply—adding to your total refund.
How This Affects Your Refund
When you claim a refund for past years, the correct rates and credits for each year are applied. This means:
- 2021 claims use 2021 rates and credits
- 2024 claims use 2024 rates and credits
- Each year is calculated independently
Our specialists ensure the correct calculations are made for each year in your four-year claim.
💡 Real Example
When we calculated refunds for Declan, we applied the specific credit amounts and rate bands for each year from 2021-2024. His refund varied year by year based on those changes—total: €2,180.
Common Refund Sources
Regardless of Budget changes, these remain the main sources of PAYE refunds:
- Emergency tax – from job changes
- Rent tax credit – up to €1,000/year
- Medical expenses – 20% relief
- Work expenses – for many professions
The average refund our clients receive is €1,080.
Find Out What You're Owed
Our experts will calculate your refund using the correct rates for each year.
Start Your Tax Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Do future budgets affect past claims?
No—past years use the rates and credits that were in place during those years. Future budget changes don't retroactively change what you're owed.
Should I wait for Budget announcements?
No—waiting risks losing older years. Claim now for what you're already owed. Future budgets may bring new opportunities, but don't delay on existing entitlements.
What if rates changed during a year I'm claiming?
Tax changes typically apply from the start of the following year. Our calculations use the correct annual rates for each year.