January tax changes mean more money back in your pocket

Income tax changes announced in Budget 2023 come into effect from January 1st and will put more money back in people’s pockets to help them to better deal with the cost of living crisis, according to local Fine Gael T.D Emer Higgins.

“In September, Ministers Donohoe and McGrath announced a personal income tax package worth more than €1.1 billion as part of Budget 2023 and people will see the impact in their wages from January,” Deputy Emer Higgins said.

“The aim of the package is to ensure people take home more of their hard-earned cash, that they pay the higher tax rate of tax at a later point and that those who are benefitting from the changes to the minimum wage are not negatively impacted by additional USC.

“From January 1st your main personal tax credits (Personal, Employee and Earned Income) have increased by €75 from €1,700 to €1,775 and the standard rate cut-off point being increased by €3,200, going from €36,800 to €40,000 for single people and from €45,800 to €49,000 for married couples / civil partners with one earner. More people across Dublin will take home more of the money they earn right throughout the year, and that means more households are further protected from the rising cost of living and impact of inflation,” said Emer Higgins.

“An increase in the Home Carer Tax Credit of €100 will also comes into effect on January 1st, bringing it from €1,600 to €1,700. This offers a greater level of support to parents who are caring for a child or dependent person at home. An increase of €1,625 to the 2% USC rate band ceiling will also ensure that a full-time worker on the minimum wage, who benefits from the increase in the hourly rate from €10.50 to €11.30, will remain outside the highest rates of USC,” continued Deputy Emer Higgins.