Personal income tax bands and credits
The income tax standard rate band has been increased by €2,000 for all earners, resulting in the band for single individuals increasing from €40,000 to €42,000 and for married couples/civil partners with one earner from €49,000 to €51,000.
The personal tax credit, the employee tax credit and the earned income credit have all increased by €100. The home carer tax credit has increased from €1,700 to €1,800.
Universal Social Charge (USC)
The 2% USC rate band ceiling has increased from €22,920 to €25,760. The 4.5% rate of USC has been reduced to 4%.
The reduced rate of USC of 2% for medical card holders earning less than €60,000 per annum has been extended for a further two years.
The exemption for income less than €13,000 remains unchanged
| Range | % |
|---|---|
| From €1 – €12,012 | 0.5% |
| From €12,013 – €25,760 | 2% |
| From €25,761 – €70,044 | 4% |
| Over €70,044 | 8% |
| Personal tax credits and bands | 2024 | 2023 |
|---|---|---|
| Personal tax credits: | ||
| Single | €1,875 | €1,775 |
| Married | €3,750 | €3,550 |
| PAYE | €1,875 | €1,775 |
| Earned income tax credit for self-employed | €1,875 | €1,775 |
| Rent tax credit | €750 | €500 |
| Home carer's tax credit | €1,800 | €1,700 |
| Age exemption limits (aged 65 and over): | ||
| Single | €18,000 | €18,000 |
| Married | €36,000 | €36,000 |
| 20% standard rate bands: | ||
| Single | €42,000 | €40,000 |
| Married one income | €51,000 | €49,000 |
| Married two incomes | €84,000 | €80,000 |
Rent tax credit
The rent tax credit has been increased to €750 per year. This increase applies from 2024 onwards.
There has been an amendment to allow parents of students living in “Rent-a-Room” or digs accommodation to claim the rent tax credit. This amendment applies retrospectively to tax years 2022 and 2023.
Mortgage interest relief
A one-year mortgage interest tax relief scheme is being introduced for homeowners with an outstanding mortgage on their principal private residence of between €80,000 and €500,000 as of 31 December 2022.
Qualifying homeowners will be eligible for mortgage interest tax relief in respect of the increased interest paid on the mortgage in the calendar year 2023 compared with the amount paid in 2022 at the standard rate of income tax (20%), capped at €1,250 per property.
Tax relief for landlords
A new temporary tax relief for landlords has been introduced. It provides tax relief on residential rental income at the standard rate of income tax of 20%.
Subject to certain conditions, rental income of €3,000 for 2024, €4,000 for 2025 and €5,000 for 2026 and 2027 will be disregarded at the standard rate of tax. The scheme is expected to end in 2027.
Rental properties held by the landlord on which the relief is being claimed must remain in the rental market for four years or there will be a full clawback of the relief. The relief only applies to tenancies registered with the Residential Tenancies Board (RTB) or where a residential property is let to a public authority.
Help to Buy Scheme
The Help to Buy Scheme has been extended at the current rates until the end of 2025. The current maximum credit is 10% of the house price, up to a maximum of €30,000. This has further been extended to include units purchased under the Local Authority Affordable Purchase Scheme.
Residential electricity
The tax disregard in relation to personal income received by households who sell residual electricity from micro-generation to the national grid is doubling from 1 January 2024, resulting in an income disregard of up to €400 per year.
Pay Related Social Insurance
All PRSI contribution rates will increase by 0.1% from 1 October 2024.