Budget 2021
There have been no changes to the rates of income tax. There have been no changes to the standard rate cut off points.
The entry level into the final USC rate band has been increased from €20,484 to €20,687 to ensure minimum wage workers are excluded.
The higher Employer PRSI rate entry level has also been increased from €394 to €398 per week.
The Earned Income Credit has been increased by €150 to €1,650 to bring it into line with the employee PAYE credit. This credit is available to taxpayers earning self-employed trading or professional income and to business owners / managers who are ineligible for a PAYE credit on their salary income. The Dependent Relative Credit is being increased by €70 from €175 to €245.
Tax credits (main)
| Tax credit | 2021 (€) | 2020 (€) |
| Single person | 1,650 | 1,650 |
| Married person | 3,300 | 3,300 |
| PAYE credit | 1,650 | 1,650 |
| Earned Income Credit | 1,650 | 1,500 |
| Single person child carer | 1,650 | 1,650 |
| Incapacitated child credit max | 3,300 | 3,300 |
| Age tax credit – Single or widowed | 245 | 245 |
| Age tax credit – Married | 490 | 490 |
| Dependent relative | 245 | 175 |
| Home carer | 1,600 | 1,200 |
| Fishermen tax credit | 1,500 | 1,270 |
Budget 2020
There have been no changes to the rates of income tax. There have been no changes to the standard rate cut off points.
There have been no changes to the USC either in rate or in terms of entry level income.
The Earned Income Credit has been increased by €150 to €1,500. This credit is available to taxpayers earning self-employed trading or professional income and to business owners / managers who are ineligible for a PAYE credit on their salary income.
The Home Carer Credit is being increased by €100 from €1,500 to €1,600.
There is an extension of 0% BIK rate on electric vehicles and VRT relief for hybrids extended to 2020.
Dividend Withholding Tax will increase from 20% to 25% from 01 January 2020 in an attempt to increase compliance in tax paid by shareholders of Irish resident companies.
SARP [Special Assignee Relief Programme] and FED [Foreign Earnings Deduction] programmes have been extended to 2022.
Budget 2019
There have been no changes to the rates of income tax. The point at which a person enters the higher tax rate has increased by €750 from €34,550 to €35,300, creating a potential tax saving of €150.
The 4.75% rate of USC has been reduced by 0.25% to 4.5%. The entry level to the 4.75% rate of USC has been increased to €19,874 in order to take full-time workers on the minimum wage out of the top rate of USC.
The Earned Income Credit has been increased by €200 to €1,350. This credit is available to taxpayers earning self-employed trading or professional income and to business owners / managers who are ineligible for a PAYE credit on their salary income.
The Home Carer Credit is being increased by €300 from €1,200 to €1,500.
Tax credits (main)
| Tax credit | 2019 (€) | 2018 (€) |
| Single person | 1,650 | 1,650 |
| Married person | 3,300 | 3,300 |
| PAYE credit | 1,650 | 1,650 |
| Earned Income Credit | 1,350 | 1,150 |
| Single person child carer | 1,650 | 1,650 |
| Incapacitated child credit max | 3,300 | 3,300 |
| Age tax credit – Single or widowed | 245 | 245 |
| Age tax credit – Married | 490 | 490 |
| Dependent relative | 70 | 70 |
| Home carer | 1,500 | 1,200 |
| Fishermen tax credit | 1,270 | 1,270 |
Tax bands
| Personal circumstances | 2019 (€) | 2018 (€) |
| Single or widowed without dependent children | 35,300 @ 20%Balance @ 40% | 34,550 @ 20%Balance @ 40% |
| Single or widowed qualifying for single person child carer credit | 39,300 @ 20%Balance @ 40% | 38,550 @ 20%Balance @ 40% |
| Married, one spouse with income | 44,300 @ 20%Balance @ 40% | 43,550 @ 20%Balance @ 40% |
| Married, both spouses with income | 44,300 @ 20% with increase of 26,300 max.Balance @ 40% | 43,550 @ 20% with increase of 25,550 max.Balance @ 40% |
Exemption limits
| Personal circumstances | 2019 (€) | 2018 (€) |
| Single or widowed, 65 years of age & over | 18,000 | 18,000 |
| Married, 65 years of age & over | 36,000 | 36,000 |
Universal Social Charge
| Income (€) | Rate | |
| 2019 (€) | 2018 (€) | |
| Persons aged 70 and over with a medical card and income is €60,000 or less will pay a maximum of 3.5% USC | Up to 12,012 @ 0.5%12,013 – 19,874 @ 2%19,875 – 70,044 @ 4.5%Balance @ 8% | Up to 12,012 @ 0.5%12,013 – 19,372 @ 2%19,373 – 70,044 @ 4.75%Balance @ 8% |
| Non PAYE income above 100,000 | 11% | 11% |
Tax rates (main)
| Tax head | Rate | |
| 2019 | 2017 | |
| Income tax | 20% / 40% | 20% / 40% |
| Corporation tax | 12.5% / 25% / 6.25% | 12.5% / 25% / 6.25% |
| Capital Gains Tax | 33% / 10% | 33% / 10% |
| Capital Acquisitions Tax | 33% | 33% |
| Value added Tax | 23% / 13.5% / 9% | 23% / 13.5% / 9% |
| Deposit Interest Retention Tax | 39% | 39% |
| USC | 0.5% / 2% / 4.75% / 8% | 0.5% / 2% / 4.75% / 8% |
| PRSI (employee / self-employed) | 4% | 4% |
| PRSI (employer) | 8.5% / 10.75% | 8.5% / 10.75% |
| Stamp Duty (residential) | 1% – 2% | 1% – 2% |
| Stamp Duty (commercial) | 6% | 6% |
Previous tax rates
Budget 2018
There have been no changes to the rates of income tax. The point at which a person enters the higher tax rate has increased by €750 from €33,800 to €34,550, creating a potential tax saving of €150.
The Earned Income Credit has been increased by €200 to €1,150. This credit is available to taxpayers earning self-employed trading or professional income and to business owners / managers who are ineligible for a PAYE credit on their salary income.
The Home Carer Credit is being increased by €100 from €1,100 to €1,200.
0% rate on BIK on electric vehicles for 2018 with a review thereafter.
Budget 2016
There have been no changes to the rates or thresholds of income tax.
Workers earning under €13,000 per annum will be exempt from the USC.
There has been a change in the USC rates and thresholds as per table 4 on page 7.
An Earned Income Credit of €550 is being introduced for taxpayers earning self-employed trading or professional income and to business owners / managers who are ineligible for a PAYE credit on their salary income.
A new farm succession plan is to be introduced with a maximum €5k tax credit per annum for 5 years available. This new model is subject to EU State Aid approval.
General stock relief, stock relief for Young Trained Farmers, stock relief for Registered Farm Partnerships is being extended until 31 December 2018.
The Home Carer Credit is being increased by €190 from €810 to €1,000 with the income threshold increasing to €7,200 from €5,080.
The entry level to the higher employer PRSI rate is increasing from €356.01 per week to €376.01 week.
The statutory minimum wage will increase to €9.15 per hour from €8.65 per hour from 01 January 2016
Budget 2015
The top rate of income tax has been reduced from 41% to 40%.
The standard rate cut off point has been increased from €32,800 to €33,800 and proportionately for married couples and single parents.
A new water tax credit will be available at 20% of charges incurred (subject to a maximum charge of €500) payable in arrears. For example, a €350 charge incurred in 2015, a tax credit of €70 will be available in 2016.
Income averaging for Farmers will be available to farmers who derive off farm income and increased to 5 years from 3 years. This will be reviewed after 3 years.
There is a 50% increase in the exemption threshold for leasing out farmland with a new threshold for leases of 15 years and over.
New Film Relief scheme is to commence in 2015.
There is an increase in the amount of finance that can be raised by a company under the Employment and Investment Incentive to €5m annually subject to a lifetime maximum of €15m.
The table below outlines the income tax position with regard to the main tax credits for 2015.
| Tax credit | 2015 (€) | 2014(€) |
| Single person | 1,650 | 1,650 |
| Married person | 3,300 | 3,330 |
| PAYE credit | 1,650 | 1,650 |
| Incapacitated child credit max | 3,300 | 3,300 |
| Single Person Child Carer credit | 1,650 | 1,650 |
The table below sets out the tax rates and bands for 2014.
| Personal circumstances | 2015 (€) | 2014 (€) |
| Single / Widowed without dependent children | 33,800 @ 20% Balance @ 40% | 32,800 @ 20% Balance @ 41% |
| Single / Widowed qualifying for one parent family tax credit | 37,800 @ 20% Balance @ 40% | 36,800 @ 20% Balance @ 41% |
| Married couple, one spouse with income | 42,800 @ 20% Balance @ 40% | 41,800 @ 20% Balance @ 41% |
| Married couple, both spouses with income | 42,800 @ 20% with increase of 24,800 max Balance @ 40% | 41,800 @ 20% with increase of 23,800 max Balance @ 41% |
Top slicing relief on taxable lump sum termination payments is to be abolished.
Maternity Benefit which has been taxable from 01 July 2013 is now to be standardised at €230 per week (from a high rate of €262 per week).
Tax relief on medical insurance premiums is to be capped with the limit to be €1,000 per adult and €500 per child.
The One-Parent tax credit is to be replaced by a Single Person Child Carer Tax Credit with only the principal carer of the child able to claim this credit (as opposed to both parents).
A 2 year Income Tax exemption will be introduced to assist individuals who have been unemployed for at least 15 months start their own unincorporated business.
- Relief on service charges is being abolished for 2012 and subsequent years.
- Rent tax relief is being withdrawn on a phased basis and will be abolished in 2018.