2,000,000 people set to benefit from 2024 tax package | Explained

The average salary earner can expect a €780 increase in take-home pay as a €1.3 billion tax package comes into effect from tomorrow. The package was announced as part of Budget 2024 and includes a series of tax cuts and increases in credits. A single person earning an average annual salary of €47,000 can expect to see an increase in take-home pay of €780 in 2024. A couple earning €100,000 between them will see an increase in take-home pay of €1,560 in 2024. Minister for Finance Michael McGrath said the tax package will ensure over two million people see an increase in their take-home pay. “A key theme of Budget 2024 was to enhance a number of tax incentives for enterprise in Ireland,” he said. From tomorrow, the main tax credits (personal, employee and earned income) will all increase by €100 from €1,775 to €1,875. There are also increases to the Home Carer Tax Credit, Single Person Child Carer Tax Credit and Incapacitated Child Tax Credit. The Rent Tax Credit was also increased to €750 for single people, up from €500. The first USC rate cut in 5 years will see the 4.5% rate reduced to 4%. The second USC rate band (2%) was also increased to €25,760 to account for the increase in minimum wage and to ensure full-time workers earning the national minimum wage will remain outside the top rates of USC. Mr McGrath said the tax package is combined with targeted mortgage interest relief, an extension of the reduction in VAT on electricity and gas, additional energy credits and social protection changes. “This represents a comprehensive response on the part of Government to the cost-of-living challenges faced by households,” he said. The Research and Development tax credit will also increase to 30% for 2024 expenditure, which Mr McGrath said will help businesses “invest in their future productivity”. An increase in the cap on qualifying expenditure from €75 million to €125 million for the Film Tax Credit is subject to State Aid approval. ________________________________________________________________________________________________ 📱 Have you downloaded the Newstalk app? - Find the app in the Google Play store: https://play.google.com/store/apps/details?id=com.thisisaim.newstalk&hl=en_IE&gl=US - Find the app via Apple: https://apps.apple.com/ie/app/newstalk-106-108-fm/id372643826 #️⃣ SUBSCRIBE to the Newstalk social channels: - YOUTUBE | youtube.com/@Newstalkfm - TWITTER | twitter.com/newstalkfm - INSTAGRAM | instagram.com/newstalkfm/ - FACEBOOK | facebook.com/newstalkfm - WEBSITE | https://www.newstalk.com/ 🎧 PODCAST - listen at your leisure: newstalk.com/podcasts - iTunes: search for Newstalk in your app! - Spotify: search for Newstalk for our latest pods and news - Or wherever you get your podcasts! 📱GET IN TOUCH WITH NEWSTALK - WhatsApp: get in touch on 0871400106