The standard rate tax band (currently 20%) will increase by €2,000 to €44,000.
Minimum wage will increase by 80c to €13.50 per hour with effect from 1 January 2025.
The 4% rate of USC will reduce to 3% and the entry level to the 3% USC rate band has been increased by €1,622 to €27,382.
The home carer credit increased by €150 to €1,950.
Personal, employee and earned income credits each increased by €125 – from €1,875 to €2,000.
The single parent credit increased by €150 to €1,900.
The limit for the provision of non-cash benefits by employers was increased by €500 to €1,500 per annum with up to five such benefits allowed up to this limit.
Incapacitated child credit increased by €300 to €3,800.
The temporary OMV €10,000 reduction was extended to 2025 for company provided vehicles – this is in addition to the electric vehicle OMV relief of €35,000 for 2025.
The BIK exemption for e-charging points on business premises has been extended to the installation of facilities at the home of employees/directors.
A further increase in PRSI contribution rates of 0.1% from 1 October 2025 had been previously announced.
| Tax rates | 2024 | 2025 |
|---|---|---|
|
Standard tax rate
|
20%
|
20%
|
|
Higher tax rate
|
40%
|
40%
|
| Standard rate band | 2024 | 2025 |
|---|---|---|
|
Single/widowed
|
€42,000
|
€44,000
|
|
Married couple one income
|
€51,000
|
€53,000
|
|
Married couple two incomes
|
€84,000
|
€88,000
|
| Tax credits | 2024 | 2025 |
|---|---|---|
|
Personal tax credit
|
€1,875
|
€2,000
|
|
Employee tax credit
|
€1,875
|
€2,000
|
|
Earned income credit
|
€1,875
|
€2,000
|
