A series of budget 2024 tax reforms aimed at supporting personal finances and the ongoing cost of living crisis have come into force.
As part of plans announced in October, the government is making a series of changes to tax rates and support schemes for next year.
The most notable changes for individuals are the increase in the annual rent tax credit from €500 to €750 per year and the reduction in the universal social contribution rate from 4.5% to 4%.
The existing rent tax credit rate of 500 euros, which applies in 2022 and 2023, has been criticized by opposition parties in recent months as not being high enough to deal with high rental costs.
As part of the overall €1.3 billion income tax package, all major tax deductions, including personal tax, employee tax and earned income tax, will also be increased by €100 from €1,775 to €1,875.
Those receiving the home caregiver tax credit, single child care worker tax credit, and disabled child tax credit will also receive an increase.
Finance Minister Michael McGrath said the changes “will ensure a net increase in take-home pay for more than two million taxpayers” in 2024.