Individual - Significant developments

Last reviewed - 12 February 2024

Irish Finance Act 2023

Following the most recent Irish Finance Act (effective from 1 January 2024):

  • There are increases to personal tax thresholds and credits.
  • The home carer tax credit is increased by 100 euros (EUR) to EUR 1,800.
  • Reduction in the middle rate of Universal Social Charge (USC) from 4.5% to 4%. The entry point for the middle rate USC has increased from EUR 22,920 to EUR 25,760.
  • The company vehicle original market value (OMV) reduction of EUR 10,000 has been extended into 2024, and the gradual tapering of the electric vehicle incentive (a reduction in OMV) has been extended by one year resulting in no reduction in the incentive between 2023 and 2024.
  • The help to buy scheme was amended to include units purchased under the local authority affordable purchase scheme and extend the help to buy scheme to the end of 2025.
  • The rental tax credit has been increased from EUR 500 to EUR 750 (20% of the qualifying payment up to EUR 750).