Finance Minister Jack Chambers has verified the reduction of the income tax standard-rate cut-off point by €2,000, bringing it to €44,000, and the lowering of the Universal Social Charge (USC) from 4% to 3% for those earning between €25,760 and €70,044. The changes were announced in the Dáil by the Fianna Fáil TD as part of a €1.4 billion tax reform embedded in the Coalition Government’s 2025 Budget.
During his budget presentation, Mr Chambers clarified that the USC will now apply at 3% for earnings above €27,382, an increase of €1,622 to account for the 80 cent rise in the national minimum wage, set to come into effect next year. Increased Personal, Employee, and Earned Income Credits of €125 were also confirmed by Mr Chambers as part of this budget.
In the provisions of the 2025 budget, properties valued at more than €1.5m will be subjected to a 6% stamp duty, and a new tax on vaping will be introduced. The rent tax credit will also rise, reaching €1,000.
Moreover, Child Carer tax credits for both Single Persons and Home Carers will be raised by €150, along with an elevation of the Dependent Relative Credit by €60.
Information on additional changes is expected to be released shortly.