€800 A YEAR WAGE BOOST
€1.3bn income tax plan starts
THE average worker could gain up to €800 a year as changes to income tax under Budget 2024 come into effect from tomorrow.
A €1.3billion income tax package for workers and measures to support businesses will be rolled out, the Finance Minister confirmed yesterday.
Michael Mcgrath said the changes to the main tax credits, USC rates and standard rate cut-off point will help two million income tax payers.
There’s more good news with rent tax credit to be increased to €750 from New Year’s Day.
Mr Mcgrath said: “The tax package in Budget 2024 [means] taxpayers will see an increase in their net take home income.
“From tomorrow the main tax credits, personal, employee and earned income, will all increase by €100 from €1,775 to €1,875. There are also increases to the Home Carer Tax Credit, Single Person Child Carer Tax Credit and Incapacitated Child Tax Credit.” The standard rate cut-off point will be hiked by €2,000 to €42,000 for single persons, with similar increases for married couples. In addition the first USC rate cut in five years will see the 4.5% rate drop to 4%. The second, 2% rate band will increase to €25,760, in line with the increase in the national minimum wage to €12.70, ensuring full time workers on minimum wage stay outside the top rates of USC. A single person earning the average annual salary of €47,000 can expect to see an increase in take home pay of €780 in 2024. A couple earning €100,000 between them will see an increase in take home pay of €1,560. Mr Mcgrath said when combined with other Budget measures including energy credits and social welfare hikes it represents “a comprehensive response” to the cost of living challenges. There are also supports for businesses with an enhanced Employment Investment Incentive scheme, relief for start-ups and higher research and development tax credits.