Tax rates and mortgage relief key focuses in Budget 2024

The full details of Budget 2024 were announced in the Dáil by Minister for Finance Michael McGrath and Minister for Public Expenditure Paschal Donohoe on Tuesday afternoon.

The wide range of measures, totalling around €6.5billion, mainly centred around mortgage relief, renters’ supports, and changes to tax rates.

Mortgage holders in Roscommon and nationwide will have their mortgage interest tax relief offered on increased interest payment amounts for 2023, capped at €1,250. Renters’ credits meanwhile have been increased to €750, and the Help to Buy scheme will be extended to the end of 2025. There will also be a temporary tax relief for small landlords over the next four years.

In terms of tax rates, the lower rate (20%) band for income tax will increase from €40,000 to €42,000, the Universal Social Charge (USC) 4.5% rate will reduce to 4%, and the USC 2% rate band will expand to include income up to €25,760. Personal, PAYE and earned income tax credits will increase by €100 to €1,875.

There will also be a weekly increase of €12 for social protection payments, and lump sums are being issued for Living Alone Allowance, Carers’ Support Grant, Disability Support Grant, Blind Pension, Invalidity Pension, Domiciliary Care Allowance, Working Family Payment, Fuel Allowance payment, and Qualified Child Bonus.

Free schoolbooks will also be introduced for Junior Cycle in secondary schools from September 2024, and families with an income of less than €100,000 will see undergraduate college fees halved from €3,000 to €1,500 this year.

Other measures include three energy credits for households of €150 each, and a €1.40 increase to minimum wage. While the price of a pint will stay the same, excise on a pack of 20 cigarettes has been increased by 75c. A tax on vaping products will be introduced next year in Budget 2025.

The full Budget report is available to read on