The €1.3 billion personal tax package that came into effect this week has been welcomed by Donegal minister, Charlie McConalogue.
“The package, announced in last October’s budget, will benefit up to two million income taxpayers. The measures that have come into effect since Monday will make a real and significant difference to taxpayers in Donegal,” the Minister for Agriculture, Food and the Marine commented.
The measures introduced by the Minister for Finance, Michael McGrath, three months ago include an increase of the standard rate of income tax band by a further €2,000 to €42,000, a reduction in the USC rate from 4.5 per cent to 4.0 per cent, an increase in the personal, employee and earned income tax credits each by €100 to €1,875 and an increase in the home carer tax credit by €100 to €1,800. The single-person child carer credit will increase by €100 to €1,750, while the incapacitated child tax credit will increase by €200 to €3,500.
“A single person on an annual salary of €47,000 can expect to see an increase in take-home pay of €780 in 2024 as a result of the income tax measures coming into effect, while a couple earning a combined total of €100,000 will see an increase in take-home pay of €1,560 in 2024,” the Minister said.
The rent tax credit for people paying for private rented accommodation is up from €500 to €750 a year, while temporary rental income tax relief is being introduced to support private landlords.
“The relief will be available against some rental income at the standard rate of 20% each year. It will be available from 2024 to 2027 and will only apply if the landlord keeps their rental property in the rental market for the next four years,” Minister McConalogue added.
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