My Future Fund. Auto-Enrolment Retirement Savings System:
This is a new retirement savings scheme for employees which is set to commence on 30th September 2025. The scheme aims to support people who are not making contributions into an occupational or other supplementary pension to help them maintain their standard of living in retirement.
Minimum Wage:
Will increase from €12.70 per hour to €13.50 per hour.
BIK
The €10,000 temporary reduction on the OMV of company vans and category A to D company cars will be extended to 31st December 2025.
For electric vehicles the additional temporary reduction of €35,000 will also remain in place giving a total reduction of €45,000.
Small Benefit Exemption:
The limit will be increased from €1,000 to €1,500 and a number of benefits can be awarded increasing from 2 to 5 not exceeding the €1,500.
Personal Taxes:
The following tax credits will increase by €125 to €2,000:
Personal tax credit
Employee tax credit
Earned income tax credit
Other tax credits will also increase:
Blind tax credit by €300 to €1,950
Dependent relative credit, by €60 to €305
Home carer credit, by €150 to €1,950
Incapacitated child credit, by €300 to €3,800
Single person child carer credit, by €150 to €1,900
The rent tax credit is increased for 2024 and 2025, by €250 to €1,000 (for married couple €2,000).
Mortgage Interest Tax Credit:
This has been has been extended for 2024. This tax credit is 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 Credit is available on the increased interest you pay on your mortgage in 2024 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.
Universal Social Charge (USC)
The 4% rate of USC will be reduced to 3%.
The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044.
Standard Rate Cut-Off Point (SRCOP):
The standard rate tax band (the amount you can earn before you start to pay the higher rate of tax) will be increased by €2,000 to €44,000 for a single person, with proportionate increases for married couples and civil partners.
PRSI:
Further 0.1% increase which will commence from October 2025.
Capital Acquisitions Tax (CAT):
The group thresholds CAT are increased:
Group A to €400,000 (from €335,000)
Group B to €40,000 (from €32,500)
Group C to €20,000 (from €16,250)
The increased thresholds apply where the date of the gift or inheritance is on or after 2 October 2024.
Help-to-Buy Scheme (HTB):
The HTB has been extended to the end of 2029. It was due to end on 31 December 2025.
Public transport fares:
The 20% reduction in public transport fares will continue in 2025.
The 50% price reduction on the Young Adult Leap Card for people aged 19-25 and the 90-minute fare will continue in 2025.
Free public transport will be extended to children between 5 and 8 years of age.
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