Tax rate
Income tax rates remain unchanged at standard rate of 20% and higher rate of 40%. As announced previously, the DIRT rate will fall to 35%.
Standard rate cut-off point
The entry point to the higher rate of tax for single earners has increased by €750 from €34,550 to €35,300. There is a corresponding increase for single-income married couples of €750 from €43,550 to €44,300.
Earned income tax credit
The earned income tax credit has increased from €1,150 to €1,350 as announced in Budget 2018.
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Personal tax credits and bands
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2019
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2018
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Personal tax credits
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Single
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€1,650
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€1,650
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Married
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€3,300
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€3,300
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PAYE
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€1,650
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€1,650
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Earned income tax credit for self-employed
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€1,350
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€1,150
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Home carer credit
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€1,500
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€1,200
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Age exemption limits (aged 65 and over)
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Single
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€18,000
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€18,000
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Married
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€36,000
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€36,000
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20% standard rate tax bands
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Single
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€35,300
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€34,550
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Married one income
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€44,300
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€43,550
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Married two incomes
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€69,100
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€67,600
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Universal Social Charge (USC)
The USC will be lowered from 1 January 2019 by way of reduction in the third rate from 4.75% to 4.5%. There is a further increase to the second rate band from €19,372 to €19,874 from 1 January 2019.
The exemption for income less than €13,000 also remains unchanged.
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From €1 – €12,012
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0.5%
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From €12,013 – €19,874
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2%
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From €19,875 – €70,044
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4.5%
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Over €70,044
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8%
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The 11% rate will continue to apply for self-employed income over €100,000.
Home carer tax credit
The home carer tax credit is further increased from €1,200 to €1,500. The income threshold remains unchanged at €7,200.
Mortgage interest deduction for residential landlords
100% mortgage interest deduction has been restored for rented residential properties with effect from 1 January 2019. This follows gradual increase from restricted 75% of mortgage interest deduction for rented residential property.
Employment & Investment Incentive (EIIS)
The Minister announced that he will introduce measures in the Finance Bill to resolve problems identified with this tax relief and to increase its efficiency and effectiveness.
Benefit-in-kind
The 0% rate of benefit-in-kind for electric vehicles has been extended for three years. A cap of €50,000, based on the original market value of the vehicle, has been introduced.
Drugs payment scheme
The monthly threshold for the drugs payment scheme is being reduced from €134 to €124 per month.
