Tax bands and credits were adjusted in Budget 2019.

In Budget 2020, there have been no changes in these rates. Full details are available on the Revenue Commissioners’ Website.

It can be accessed by clicking HERE 

Budget 2019 also introduced changes to the Universal Social Charge (USC). Once again, these have not been adjusted in Budget 2020. Details may be accessed by clicking HERE

Budget 2020 does increase one tax credit, i.e. the HOME CARER’S TAX CREDIT is increased by €100 to €1600 per year.

Budget 2022    

The following changes come into effect from 1 Jan 2022:    

 

Universal Social Charge (USC)

A slight adjustment to one of the USC bands for 2022 is being introduced.

 

USC rates and bands               2021                                                    2022

First €12,012                           0.5%                First €12,012               0.5%

Next €8,675                            2.0%                Next €9,283                2.0%

Next €49,357                          4.5%                Next €48,749              4.5%

Balance                                   8.0%                Balance                       8.0%

 

• Incomes of €13,000 or less are exempt. Once income is over this limit the relevant rate of USC is applied on all income.
• Medical card holders whose aggregate income does not exceed €60,000 and individuals aged 70 and over whose aggregate income does not exceed €60,000 pay a maximum USC rate of 2%.

 

Income Tax

Tax bands will be widened in in 2022; tax rates are unchanged.

 

Tax Rates & Bands                                         2021                            2022

Single, widowed, surviving single partner     €35,300 @20%           €36,800 @ 20%

                                                                        balance @40%            balance @ 40%

 

Married, civil partner (1 income)                   €44,300 @ 20%          €45,800 @ 20%

                                                                        balance @ 40%           balance @ 40%

 

Married, civil partner (2 incomes)                  €44,300 @ 20%          €45,800 @ 20%

                                                                        With an increase of     With an increase of

                                                                        €26,300 max*             €27,800 max*

                                                                        balance @ 40%           balance @ 40%

*or to the income of the spouse/civil partner with the lower income

 

Exemption Limits: The exemption limits for persons aged 65 years and over remain unchanged: €18,000 (single/widowed/surviving civil partner) and €36,000 (married/civil partner).

 

Main Tax Credits

An increase of €50 will apply to some tax credits in 2022.

 

Tax Credits                                                                 2021                2022

Single person                                                              €1,650             1,700

Married/Civil Partner                                              €3,300             3,400

PAYE Tax credit                                                        €1,650             1,700

Age Credit (from 65)

            Single, Widowed, surviving civil partner       €245                €245

            Married, civil partner                                        €490                €490

 

 

Other Budget Measures

• €5 increase in the maximum rate of social welfare payments including Widow(er)s pension and State Pension from Jan 2022.
• The living alone increase will rise by €3 per week from €19 to €22 from Jan 2022.
• The additional payment at Christmas (Bonus) will be paid in 2021.
• The qualifying age for the State Pension will remain at age 66.
• The monthly threshold for the drugs payment scheme will reduce from €114 to €100.
• No change in Capital Gains Tax (CGT) or Capital Acquisition Tax (CAT)
• The Over 70 medical card eligibility limits remain unchanged:

€550 per week for a single person and €1,050 per week for couples who are married, cohabiting or in a civil partnership

 

 

 

Example

 

Single person, pension of €37,000, age 69

 

Change in tax bands              €300

Change to Tax credits            €100

Change to USC                        €15

Net saving                              €415