There are a number of measures introduced in the budget which will lead to tax benefits for many people. Whilst individual circumstances and the Finance Bill will determine the extent of these benefits, here is a summary of some of the tax changes which will benefit Irish Citizens.

Income tax

The threshold for the higher rate of income tax (40%) will increase by €750. This means, for example, an increase from €34,550 to €35,300 for single individuals and an increase from €43,550 to €44,300 for married couples with one earner (from 1 January 2019).

The Home Carer Tax Credit will increase from €1,200 to €1,500.

The Earned Income Tax Credit for self-employed people will increase from €1,150 to €1,350.

Universal Social Charge (USC)

The 4.75% rate of USC will reduce to 4.5%.

The ceiling of the 2% band will increase from €19,372 to €19,874, so that the salary of a full-time worker on the minimum wage will remain outside the higher rates of USC.

Incomes of €13,000 or less will continue to be exempt from USC in 2019. Once your income is over this limit, the following rates will apply (from 1 January 2019):

• €0 to €12,012 @ 0.5%

• €12,012 to €19,874 @ 2%

• €19,874 to €70,044 @ 4.5%

• €70,044+ @ 8%

• Self-employed income over €100,000: 3% surcharge

The weekly income threshold for the higher rate of employer’s PRSI will increase from €376 to €386 to ensure that there is no incentive to reduce the working hours for a full-time employee on the increased minimum wage.

Stamp duty

The exemption for young trained farmers from stamp duty on agricultural land transactions continues for another 3 years to the end of 2021.

To find out more, visit citizensinformation.ie call 0761 07 4000 or drop in to your local Citizens Information Centre.