Rise of inflation and cost of living and housing crisis didn't bring huge measures, Minister of Finance brought in a sensible budgetary policy so to speak.
The summary of changes implemented from 1st of January 2024 for working population include:
MINIMUM WAGE
The National Minimum wage will increase by €1.40 to €12.70 per hour from 1 January 2024.
INCOME TAX
Income tax rates will stay the same (at 20% and 40%).
An increase of €2,000 in the income tax standard rate cut-off point for all earners, from €40,000 to €42,000 for single individuals and from €49,000 to €51,000 for married couples / civil partners with one earner. This is as follows (source: Revenue.ie)
An increase of €100 in the Personal Tax Credit from €1,775 to €1,875
An increase of €100 in the Employee Tax Credit from €1,775 to €1,875
An increase of €100 in the Earned Income Credit from €1,775 to €1,875
An increase of €100 in the Home Carer Tax Credit from €€1,700 to €1,800
Other tax credits and increases can be found on Revenue.ie
USC
An increase of € €2,840 to the 2% rate band ceiling from €22,920 to €25,760. The reduced rate of USC concession for medical card holders is being extended for a further year.
The reduction to 4% USC rate (from 4.5%) will apply to income between €25,760 and €70,044.
Here are the thresholds:
Source: Revenue.ie
HOUSING
Rent Tax Credit of €500 per annum for renters in the private rented sector is increased to €750 from 2024.
A temporary rental income tax relief is being introduced for private landlords. The relief will be available against some rental income at the standard rate of 20% each year. It will be available from 2024 to 2027 and will only apply if the landlord keeps their rental property in the rental market for the next four years. Landlords will be able to reduce the tax due on rental income by up to €600 in 2024, €800 in 2025, and €1,000 in 2026 and 2027. The relief will be clawed back if the landlord leaves the rental market during this time.
Vacant Home Tax: has increased to 5 times a property’s existing base Local Property Tax liability (from 3 times) from1 November 2023
Extension of Help to Buy (HTB) to 31 December 2025
A new Mortgage Interest Tax Relief will be introduced for a year (12 months) for homeowners who had an outstanding mortgage balance of between €80,000 and €500,000 on their primary home on 31 December 2022. The Mortgage Interest Tax Relief will be available on the increased interest you pay on your mortgage in 2023 when compared with the amount you paid in 2022. The tax relief on the increase will be 20%, which is the standard income tax rate, and it will be capped at €1,250
CLIMATE AND ENVIRONMENTAL MEASURES
Carbon Tax Tax rate increased from the current rate of €48.50 to €56.00 per tonne of CO2 from 11 October 2023. This will apply to all other fuels from 1 May 2024.
VAT AND EXCISE MEASURES
Application of a zero VAT rate for ebooks and audio books
Extension of current 9% VAT rate to gas and electricity for 12 months to 31 October 2024
Other benefits introduced by the Government Departments including the Department of Social Protection budget allocation which is €€25.2 billion in 2024 which are significant will be listed in my second post and can be now found on https://www.gov.ie/en/publication/a93a4-your-guide-to-budget-2024/
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