In Budget 2024, Fianna Fáil delivered a progressive which focused on investing in public services and easing the cost of living for individuals and families. This month, several tax changes came into effect that will put more money back into your pocket. Below are the changes and what it means for you:
- The standard rate tax band increased by €2,000 to €42,000 for a single person, with proportionate increases for married couples and civil partners.
- The ceiling for the 2% USC band increased by €2,840 from €22,920 to €25,760 since 1 January 2024.
- The 4.5% USC rate that applied to income between €22,900 and €70,044 was reduced to 4% since 1 January 2024. The 4% rate now applies to income between €25,760 and €70,044.
The following tax credits increased by €100:
- Personal Tax Credit to €1,875
- Employee Tax Credit to €1,875
- Earned Income Tax Credit to €1,875
- The Home Carer Tax Credit to €1,800.
- The Single Person Child Carer Credit to €1,750.
- The Incapacitated Child Tax Credit increased by €200 to €3,500.
- The Renters Tax Credit increased from €500 to €750 and payments made by parents for digs or rent-a-room arrangements for their children to attend an approved course will now also qualify for the Rent Tax Credit
- A new temporary mortgage interest tax credit was introduced. The tax relief is 20% of the increased interest you paid on your mortgage in 2023 when compared with the amount you paid in 2022. The relief is capped at €1,250.
