€800 income boost for most Irish workers as Budget 2024 tax changes take effect

IT IS expected that around two million taxpayers will see an increase in their take-home pay as a result of measures that came into effect yesterday, January 1.

The average worker in Ireland could gain up to €800 a year as changes to income tax come into effect under Budget 2024. 

A €1.3billion income tax package for workers and measures to support businesses will be rolled out, the finance minister confirmed yesterday.

Michael McGrath said “The tax package in Budget 2024 [means] taxpayers will see an increase in their net take-home income.

“From New Years day, 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 standard rate cut-off point will be hiked by €2,000 to €42,000 for single persons, with similar increases for married couples.

In addition, the first USC rate cut in five years will see the 4.5 percent rate drop to four percent. The second, two percent rate band will increase to €25,760, in line with the increase in the national minimum wage to €12.70, ensuring full-time workers on minimum wage stay outside the top rates of USC.

A single person earning the average annual salary of €47,000 can expect to see an increase in take home pay of €780 in 2024, while couples earning €100,000 between them will see an increase in take-home pay of €1,560.