The third and final phase of the Federal Government’s tax shift comes into force from the start of the new year. The measures mean that we will see our net income rise by an average of 36 euro/month. The 40% tax band is being expanded upwards which means that a greater portion of income will be taxed within this band and a far smaller portion of income will be taxed in 45% tax band.
Those on lower incomes will benefit the most. For example, someone with a gross income of 2,000 euro/month will take home 1,612.63 euro/month from January 2019. This is 37.19 euro/month or 2.36% that was the case for someone earning 2,000 euro/month gross in 2018.
Those with a gross salary of 3,000 euro/month will take home 1,955.51 euro/month in 2019. This is 35.84 euro/month or 1.87% more than was the case in 2018.