Highlights
- No change to personal tax rates or bands.
- Changes to the Home Carer credit (from €1,500 to €1,600) and to the earned income credit (from €1,350 to €1,500).
- One year extension of reduced rate of USC for medical card holders.
Rates/Bands/Credits
Rates & Brands |
2020 |
2019 |
2018 |
Single person’s tax band |
€35,300 |
€35,300 |
€34,550 |
Additional band for single parents |
€4,000 |
€4,000 |
€4,000 |
Married couples' tax band |
|
|
|
One income |
€44,300 |
€44,300 |
€43,550 |
Two incomes |
€70,600 |
€70,600 |
€69,100 |
Tax rate applicable to above bands |
20% |
20% |
20% |
Tax rate applicable to balance of income |
40% |
40% |
40% |
Personal Credits |
2020 |
2019 |
2018 |
Single person |
€1,650 |
€1,650 |
€1,650 |
Married person |
€3,300 |
€3,300 |
€3,300 |
|
|
|
|
- Without dependent children |
€2,190 |
€2,190 |
€2,190 |
- Qualifying for one parent family tax credit |
€3,300 |
€3,300 |
€3,300 |
Single Person Child Carer Credit (one parent only) |
€1,650 |
€1,650 |
€1,650 |
Home carer's credit (Max) |
€1,600 |
€1,500 |
€1,200 |
Personal Credits |
2020 |
2019 |
2018 |
Age credit (Single) |
€245 |
€245 |
€245 |
Age credit (Married) |
€490 |
€490 |
€490 |
PAYE tax credit |
€1,650 |
€1,650 |
€1,650 |
Earned Income Tax Credit |
€1,500 |
€1,350 |
€1,150 |
Incapacitated child (Max) |
€3,300 |
€3,300 |
€3,300 |
Dependent relative (Max) |
€70 |
€70 |
€70 |
Blind person’s credit |
€1,650 |
€1,650 |
€1,650 |
Employing a carer (at 40% rate) |
€75,000 |
€75,000 |
€75,000 |
Fisherman Tax Credit |
€1,270 |
€1,270 |
€1,270 |
PRSI & USC
No changes announced to PRSI.
USC rates & bands remain the same for 2020;
- Incomes of €13,000 or less are exempt.
- For incomes of the following bands the following rates of USC will apply:
- €0 to €12,012 @ 0.5%.
- €12,012 to €19,874 @ 2.0%.
- €19,874 to €70,044 @ 4.50%.
- €70,044 + @ 8%.
• Self-employed income in excess of €100,000 – 3% surcharge.
Employment Related Provisions
Extension of 0% BIK rate for electric vehicles
The 0% Benefit-in-kind rate for electric vehicles is being extended to 2022. The cap of €50,000 on the original market value of the vehicle remains in place.
Key Employee Engagement programme (KEEP)
Further measures are being introduced to the KEEP scheme. The availability of the KEEP scheme is being extended to companies operating in a group and to facilitate employees who work on a part-time and/or flexible basis and for movements of employees within the corporate group. However, these changes are subject to State Aid approval.
Employment and Investment (EII)
The Minister announced improvements to the current EII scheme with effect from 8 October 2019. These improvements provide for the availability of full tax relief in the year of investment in place of the current position under which 10% tax relief is delayed for a period of three years. In addition, the current investment limit of €150k has been increased to €250k. The investment limit is further increased to €500k for investors who invest for a minimum period of ten years.
Special Assignee Relief Programme (SARP) & Foreign Earnings Deduction (FED)
The Minister also announced proposals to extend the current SARP and FED reliefs for a period of three years to 31 December 2022.
Housing Related Provisions
Help to Buy (HTB)
As expected, the HTB scheme has been extended in its current format for a further two years to 31 December 2021.
Living City Initiative
The current Living City Initiative has also been extended in its current format until 31 December 2022.