Expert Opinion: Significant changes to income tax and USC bring relief to individuals and SMEs [Video]

Budget 2025 has brought about significant changes to income tax and the Universal Social Charge (USC), offering relief to individuals and small businesses, writes Nick Charalambous, Managing Director, Alpha Wealth.

These measures, aimed at helping the so-called “squeezed middle,” also bring important considerations for SMEs, which play a pivotal role in Ireland’s economy.

USC Cuts: What It Means for YouOne of the most eye-catching changes in this year’s budget is the 1% reduction in the USC for incomes between €25,000 and €75,000.

This will bring the USC rate for this income bracket down from 4% to 3%, marking the second consecutive year of cuts.

While it may appear modest, this reduction will be felt directly in workers’ take-home pay across the country.

For an individual earning €50,000, this USC cut will result in savings of around €500 per year.

The changes don’t stop there.

The entry threshold to the new 3% rate is …