The key measures announced include:
- Income Tax Package: The standard rate band will increase by €2,000 to €42,000
- The 4.5% rate of USC will be reduced to 4%
- The entry threshold to the USC rate will increase from €22,920 to €25,760
- A tax credit of €750 for tenants who are paying rent in respect of their principal private residence. Parents who pay for their student children to have tenancies in “rent a room” accommodation will also be able to claim the Rent Tax Credit.
- Personal Tax Credit, Employee Credit and Earned Income Credit will increase by €100 each
- The Home Carer Credit and the Single Person Child Carer Credit will increase by €100 each
- The National Minimum Wage will increase by €1.40 per hour to €12.70 per hour from 1 January 2024
- Excise on a pack of 20 cigarettes will increase by 75 cent, with a pro rata increase on other tobacco products
- A tax on vaping products will be introduced in Budget 2025
- A one-year Mortgage Interest Tax relief, capped at €1,250 per property, will be introduced for homeowners with an outstanding mortgage balance on their primary dwelling of between €80,000 and €500,000 as of 31 December 2022
- An extension of the 9% VAT rate on the supply of gas and electricity for a further 12 months