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Budget 2025
3rd October 2024
Last Updated: 1st October 2024
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
Personal Taxation
• Minimum wage to increase on 1st January 2025 from €12.70 to €13.50
• Rent tax credit for private tenants not in receipt of other State housing supports: Increased from €750 to €1,000 per person (€2,000 for jointly assessed couple).
• USC rate decreased by 4% to 3% and changes to tax rates and cut-off – see our Summary Table at end of page.
Cost of Living Update & Supports
• 9% VAT rate on light and heat extended to end of April 2025
• No change to 13.5% VAT rate for hospitality sector
• Credit on domestic electricity total of €250 will be over 2 payments of €125 each – Nov/Dec 2024 & Jan/Feb 2025
• Mortgage interest credit extended to end of 2024, criteria all the same as applied in 2023, including using 2022 as the base year.
• Special one-off child benefit payment of €420 paid out following the birth of a newborn
• Power up grant will provide support to businesses in the retail and hospitality sectors, at a flat rate of €4,000.
Business Taxation & Regulation
• Existing BIK relief (€10,000 reduction in open market value) for all other vehicles extended until 2025
• Existing corporation tax relief for new start-up companies – can now take up to €1,000 Class S PRSI into account when calculating the annual cap in the relief.
• PRSI contribution rates are going up 0.1% from October 2025
• VAT registration thresholds increased from 1st January 2025; for supplies of goods €85,000 and supplies of services €42,500
• Weekly social protection payments will increase by €12
Relevant Contracts Tax and Construction Industry
• No changes noted
Indirect Taxes
• Farmers flat rate – increase from the current 4.8% to 5.1% from 1 January 2025
Stamp duty
• Stamp Duty rate applied where 10 or more houses are acquired in any 12-month period is being increased from 10% to 15% with immediate effect.
Capital Taxes
• An increase to the thresholds for gifts or inheritances will apply as follows:
- Category A Threshold to €400,000
- Category B Threshold to €40,000
- Category C Threshold to €20,000
(Local) Property Tax (LPT)
• No changes noted
Miscellaneous Provisions & Announcements
• €1 increase on pack of 20 cigarettes and other tobacco products
• Small benefit exemption (i.e. employee vouchers) – annual limit to increase to €1,500, and the number of benefits making up the €1,500 limit increased from 2 to 5.
Summary Statistics:
| Budget 2024 | Budget 2023 | ||
| Capital Gains Tax Rate | 33% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – where payments made less frequently than annually) | ||
| Tax Credits | |||
| Single Person | €2,000 | €1,875 | |
| Married Couple | €4,000 | €3,750 | |
| PAYE Credit | €2,000 | €1,875 | |
| Home Carer Credit | €1,950 | €1,800 | |
| Earned Income Tax Credit | €2,000 | €1,875 | |
| Rate Bands | |||
| Single/widowed | €44,000 | €42,000 | |
| Single/widowed with dependent children | €48,000 | €46,000 | |
| Married -one income earner | €53,000 | €51,000 | |
| Married – two income earners | €88,000 | €84,000 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| < €13,000 | Exempt | Exempt | |
| € 0 – €12,012 | 0.5% | 0.5% | |
| €12,013 – €27,382 | 2% | ||
| €12,013 – €25,760 | 2% | ||
| €27,383 – €70,044 | 3% | ||
| €25,761 – €70,044 | 4% | ||
| €70,044 – €100,000 | 8% | 8% | |
| Self employed income > €100,000 | 11% | 11% | |
| PAYE income in excess of €100,000 | 8% | 8% | |
| Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.0% |
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.