Preasráitis
1.5 million income tax payers to benefit from €1.3 billion Budget package coming into effect today - McGrath
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The Minister for Finance, Michael McGrath, reminds taxpayers that the personal tax package announced in Budget 2023, takes effect from today (Sunday, 1 January 2023).
Speaking today, Minister McGrath said:
“The government is acutely aware of the cost of living pressures being experienced by people right across the country. As part of our response and to assist households, Budget 2023 included a substantial income tax package, which will ensure that 1.5 million income taxpayers will see an increase in their net income in 2023. As such, the changes will result in a direct financial benefit for all those who pay income tax, particularly those on middle incomes.
"From Today, the Standard Rate Cut-Off Point will increase by €3,200 from €36,800 to €40,000 for single persons, with commensurate increases for married couples and civil partners. For those earning €40,000, this change will mean a reduction of over €800 in income tax paid in 2023.
"The main tax credits (personal, employee and earned income) will all increase by €75 from €1,700 to €1,775. The home carer tax credit will increase by €100 from €1,600 to €1,700.
"In line with the increase in the National Minimum Wage to €11.30 also taking effect from today, the second USC rate band (2 per cent rate) will increase to €22,920. This will ensure that full-time workers earning the national minimum wage will remain outside the top rates of USC, and it will also give a modest benefit to all workers earning above that amount."
The Minister is also announcing today that taxpayers who are renting will be able to make their claim in January, for the rent tax credit in respect of rent paid in 2022.
Speaking today, Minister McGrath said:
“Budget 2023 also sought to put money back in the pockets of renters, and today I can confirm that income taxpayers who were in rental accommodation in 2022 will be able to submit their claim for the €500 rent tax credit this month. For PAYE earners, this will be from 1 January while self-employed persons will be able to claim from 24 January.
"The rent tax credit of €500 per year which also applies for 2023 is available to all renters and is expected to benefit over 400,000 people.”
Comprehensive guidance, including who may claim the credit and in what circumstances, applicable conditions and how to claim, is available on the Revenue website.