Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
FINANCE MINISTER PASCHAL Donohoe announced changes to Ireland’s income tax bands as part Budget 2023 today in an income tax package worth €1.1 billion.
The changes will see the income tax standard rate cut off point rising from €36,800 to €40,000 for single people with proportionate increases for married couples and civil partners.
This will see the rate rise from €45,800 to €49,000 for married couples in a one-income household.
This entry point increase means the top tax rate will only apply to income above €40,000 and will amount to €640 for most PAYE workers.
Personal tax credit, employee credit and Earned Income Credit are all set to rise by €75 while the Home Carer Tax Credit increased by €100 to €1,700.
The second Universal Social Charge rate band (2%) has been increased by €1,625 to €22,920 to exclude minimum wage workers. This is in line with the 80-cent-per-hour increase in the national minimum wage which was recently agreed by the Government.
Donohoe said this would ensure that full-time workers on the minimum wage will remain outside the top rates of USC.
The finance minister also extended by one year the concession that applies to those who have a medical card and earn less than €60,000 a year so that those individuals pay a reduced rate of USC.
“One of my core objectives in Budget 2023 is to ensure that workers do not find themselves in a position where they pay more income tax solely because of inflation,” Donohoe told the Dáil.
“There are so many people who work hard, but whose earnings push them outside of access to social welfare benefits. We need to help them too, we need to put money back into their pockets.”
Third income tax rate
Donohoe also said the government will further assess introducing a third rate of income tax.
The Fine Gael minister said the Tax Strategy Group had examined the impact of introducing a third rate and further analysis of its report will take place immediately and conclude before next year’s Summer Economic Statement is completed.
“Were the government to opt for the introduction of a third rate of income tax, it would require considerable change to the system in both the Revenue Commissioners and payroll providers; changes that will need significant lead time to implement,” Donohoe said.
“We are advised this could be done for January 2024.
“As a result, my department will engage with the Revenue Commissioner on the necessary preparatory work, in advance of a policy decision being made by government.”
In his budget speech, the finance minister added that Ireland needs to be mindful of its reliance on corporation tax.
“My department has undertaken significant work on these vulnerabilities, showing that approximately one in every eight euro collected by the state in tax comes from the corporation tax payments of a very small number of firms,” Donohoe said.
“At the same time, our income tax system is heavily reliant on a relatively small number of employees; just 500,000 workers and 10 multinational companies account for over one-third of our total revenue.”
Donohoe said this money cannot be depended upon to fund permanent expenditure. He said the Department of Finance will monitor public finances while excluding any of these “excess” receipts.
Find out exactly how all of the changes will affect you by using the button below.
To embed this post, copy the code below on your site
How many of those 5,000 were able to travel to Spain this summer…
@Paul:
I really despise the likes of you.
Pitiful and sad!
@Paul: You can get a basic holiday package cheap for a low side of a few 100, a mortgage requires you to have 5 figures saved up and rent even split between three people would be about 125+ a week when some of them are on 188 or as a family 400
@Paul: I agree with you. The number of parents I know who moan about the cost of school, and in the same breath tell you about their foreign sun holiday, while eejit here doesn’t go on foreign holidays to pay for school!
People give out about the cost of shoes for school…do they go barefoot during the summer?? The cost of uniform? They wear it 5 days a week for 10 months!! My issue is that all books have to be new, I would be happy if the govt even tackled that issue
Yeah guys, stop trying to enjoy life and just work to survive. You’re all so materialistic…
@Ryan Carroll: its not about the cost but the fact some can afford to go on a holiday but not to send kids back to school
@Paul: Well going back to school is more expensive, depending.
@Ryan Carroll: except you are simply saying this as you believe poor people deserve every misery they endure.
@Paul: ….. or are down in the pub most nights.
@Charles Alexander: its probably true and as the saying goes,the truth hurts
I’ve had a lot of stories regarding SVP and although they do great work, their generosity is well know to be abused. I can’t agree with any charity giving people cash, should be in the form of vouchers only.
@Theunpopularpopulist: vouchers would certainly make it a bit harder for those who abuse the system . People already get help of 125/200 per child towards books. Uniforms can be bought cheap in lidl. I think some people just don’t want to pay a things forwards their kids needs and expect hand outs for everything. If people on social are getting their full benefits , rent allowances , med cards , child benefit and don’t have to pay towards anything then that’s a lot of money a month to themselves .. no wonder they can holidays to Spain every year .
@Theunpopularpopulist: I can understand this but a lot of people feel very embarrassed about having to show they needed help from SVP. Maybe instead SVP should provide the stuff directly.
@Suzie Sunshine:
I totally agree with you Suzie nice
To see your back from holiday
Leo Varadkar and Fine Gael hate the people of Ireland.
Varadkar’s reaction to the deaths of 2 homeless people yesterday was to reminisce about where he was when Princess Diana died.
That shows the absolute and utter contempt both he and his party holds for Ireland.
We are effectively on our own as FG represents banks and vulture funds.
The government can be disregarded.
Direct action to address the national housing emergency is not simply justified.
It is essential.
Real people vote FG, banks didn’t elect them, and you won’t get anywhere pretending those voters don’t exist, you have to instead change their minds, and just insulting them as people who don’t care and writing them off as tools of banks only drives them deeper into the arms of more regressive politicians.
Most people, well off or not, are inherently decent, and would want to do things about poverty,. At the moment we have a homeless crises because social housing is no longer being built the way it had been from DeVelera to Bertie, and the reason is they know the people who vote for them don’t live in them so they don’t feel pushed. You have to make them feel pushed by lobbying them – and you don’t convince people by writing them off before you’ve even tried, they needed to be shamed and guilted into it by highlighting the plight of these families not being described as tools of banks.
@Colin Morris: Shinner bot alert!!
@Colin Morris:
Leo and Fine Gael hate the people of Ireland? oh please and stop talking rubbish
@Ryan Carroll: Don’t forget your tooth brush the next time you go to see your local TD. Don’t forget to bring a few smokes as well.
But sure Leo said 70% of the people are middle class . Surely something amiss here !
@Willy Malone: he is not counting poor people though.
According to Leo you are only human when your income reaches a certain level.
Between children’s allowance and back to school allowance there’s no excuse not to be prepared. Everyone knows when their child will be starting school so they could put a little away every week if needs be.
@Mark Daniel: that good advice for those that have a little left over each week but what about those that are struggling to get by and have nothing left over to put aside for the free schooling with voluntary contributions
Wait for FF/FG (both of which hate the people of Ireland) to claim that half the poor people are scammers and the other half have only themselves to blame. But that either way if you find yourself in financial or housing trouble in Ireland then you deserve to be thrown to the wolves / vultures.
Direct action is necessary.
Our government hates this country.
@Colin Morris: Agreed entirely. Government and state have despised the people since it’s foundation . ultimate arrogance . and grossly overrepresented per head of population.
look at the tax take and poor return for tax.
Excessive VAT rates.. stealth taxes shamblolic health services. filthy water . ecoli etc… who is monitoring water quality now ? Dept of Agriculture no less. it’s no wonder the quality of rivers has disproved.
property tax will hike in 2009. wait for the outcry then. still too many quangos.
yada yada
@scanlanavia: we are a population without a government.
FF/FG represent money. Not people.
Direct action is essential.
Since FF exposed the govts lies on that score only a few weeks ago (re numbers who were scamming and what they saved) I doubt that. Since it was FF govts that came up with medical cards, college grants, free primary secondary school, the minimum wage, free travel passes etc etc they have a funny way of showing they hate poor people.
You won’t get anywhere in your knowledge by assuming FG ”hates” the people of Ireland either, people are not cartoon villains, you gotta know your enemy in order to beat them. THey think their approach helps those people too, thats how they look in the mirror in the morning without getting ill. The fact that most of them come from the upper middle class or rich farmers skews their worldview, esp since thats who their voters are too. So instead of their constituents telling them about their poverty they are demanding tax cuts and “those scammers on welfare their whole life” (of which they think there are far more than there really are) be dealt with.
so-called booming economy
The Catholic church still picking up the slack when government turns its back on the people of Ireland.
tell us.
This is typical FF/FG deflection.
Blame the poor.
Always.
Keep The Recovery Going!!
Fg and labour let all these issues grow,they did not stand up to the EU,they accepted 42% of EU debt.the public must remove them from politics or generations of their family will be born on the streets.
have your say