Personal income tax bands and credits
The income tax standard rate band has been increased by €3,200 for all earners, resulting in the band for single individuals increasing from €36,800 to €40,000 and for married couples/civil partners with one earner from €45,800 to €49,000.
The personal tax credit, the employee tax credit and the earned income credit have all increased from €1,700 to €1,775. The home carer tax credit has increased from €1,600 to €1,700.
Universal Social Charge (USC)
The second USC rate band ceiling has increased from €21,295 to €22,920. The other bands and rates of USC remain unchanged.
The reduced rate of USC of 2% for medical card holders has been extended for a further year.
The exemption for income less than €13,000 also remains unchanged.
| Range | % |
|---|---|
| From €1 – €12,012 | 0.5% |
| From €12,013 – €22,920 | 2% |
| From €22,921 – €70,044 | 4.5% |
| Over €70,044 | 8% |
| Personal tax credits and bands | 2023 | 2022 |
|---|---|---|
| Personal tax credits: | ||
| Single | €1,775 | €1,700 |
| Married | €3,550 | €3,400 |
| PAYE | €1,775 | €1,700 |
| Earned income tax credit for self-employed | €1,775 | €1,700 |
| Rent tax credit | €500 | €500 |
| Home carer's tax credit | €1,700 | €1,600 |
| Age exemption limits (aged 65 and over): | ||
| Single | €18,000 | €18,000 |
| Married | €36,000 | €36,000 |
| 20% standard rate bands: | ||
| Single | €40,000 | €36,800 |
| Married one income | €49,000 | €45,800 |
| Married two incomes | €80,000 | €73,600 |
Rent tax credit
A new tax credit valued at €500 per year has been introduced for taxpayers who are paying rent on their principal private residence. The new credit will apply from 2022 onwards.
Pre-letting expenses
There has been an enhancement to pre-letting expenditure relief which allows a deduction against rental income for expenses incurred on a vacant residential premises prior to it being first let after a period of non-occupancy.
Special Assignment Relief Programme (SARP)
The Special Assignee Relief Programme (SARP) has been extended until the end of 2025. The income threshold to qualify for the relief has been increased from €75,000 to €100,000.
Foreign Earnings Deduction (FED)
The Foreign Earnings Deduction (FED) has been extended until the end of 2025.
Living City Initiative (LCI)
The Living City Initiative (LCI) has been extended until the end of 2027. This involves the acceleration of relief for owner-occupiers so that it can be claimed as a deduction from total income of 15% of the total eligible expenditure in each of the first six years and 10% for the seventh year and carry forward of relief for owner-occupiers.
Small benefit exemption
The annual limit that applies to the small benefit exemption has been increased to €1,000. Employers may now grant two non-cash benefits, i.e. vouchers, to an employee in a single year. These changes will apply from 2022 onwards.
Help to Buy
The enhanced Help to Buy scheme introduced last summer has been extended, at the current rates, until the end of 2024. The current maximum credit is 10% of the house price, up to a maximum of €30,000.