The standard-rate cut-off point for income tax by €2,000 to €44,000 and reduce the 4 per cent Universal Social Charge (USC) rate to 3 per cent on incomes between €25,760 and €70,044, Minister for Finance Jack Chambers has confirmed.
The changes, announced by the Fianna Fáil TD in the Dáil chamber on Tuesday afternoon, form part of an overall €1.4 billion tax package set out by the Coalition Government in Budget 2025.
Delivering his budget address this afternoon, Mr Chambers said the entry level to the new 3 per cent USC rate will increase by €1,622 to €27,382 to take into account an 80 cent increase in the national minimum wage next year.
The Government will also increase the Personal, Employee and Earned Income Credits, by €125, Mr Chambers said.
Budget 2025: Double child benefit payment; rent tax credit to rise; series of personal tax cuts
Budget 2025 main points: Bonus social welfare payments, minimum wage goes up and tax on vaping
Budget 2025: Shades of Celtic Tiger era ‘payback’ in this pre-election budget
Budget 2025: Do you have a budget question you’d like answered?
Meanwhile, the Home Carer and Single Person Child Carer Tax Credits will increase by €150 while the Dependent Relative Credit will increase by €60.
More to follow ...
