Finance Minister confirms standard rate bands of income tax will rise from January 1st
The standard rate bands of income tax will increase from tomorrow, Minister for Finance Paschal Donohoe has confirmed.
Speaking about the new package, the minister, "In Budget 2022 I sought to make changes to the personal taxation system to ease the burden facing average and middle income earners and help them with the rising cost of living.
"From tomorrow, the standard rate band for all earners will rise from €35,300 to €36,800 for single earners, from €39,300 to €40,800 for one-parent families; and from €44,300 to €45,800 for couples. These changes will benefit everyone who pays income tax."
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A €50 increase in each of the main tax credits, including personal tax credit, employee tax credit and the earned income credit, will also take effect.
In regards to Universal Social Charge (USC), the 2% rate band max will also rise in line with the national minimum wage increase.
According to Minister Donohoe, this will reportedly ensure that full time workers who benefits from the wage increase will remain outside the top USC rate.
The minister continued: "The Government is acutely aware of the impact of the rising cost of living for individuals and families. The income tax changes taking effect from tomorrow are an important part of the Government’s response to supporting citizens with this challenge.”
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