Budget 2024 – Taxation
Tax Rates and SRCOPs
There has been no change to tax rates for 2024. The standard rate will remain at 20% and the higher rate at 40%. The SRCOPs for 2024 have been increased as follows.
| SRCOP | 2023 | 2024 |
| Single/Widowed Person or Surviving Civil Partner | First €40,000 @ 20% Balance @ 40% | First €42,000 @ 20% Balance @ 40% |
| Qualifying for the Single Person Child Carer Tax Credit | First €44,000 @ 20% Balance @ 40% | First €46,000 @ 20% Balance @ 40% |
| Married Couple or Civil Partnership – One Income | First €49,000 @ 20% Balance @ 40% | First €51,000 @ 20% Balance @ 40% |
| Married Couple or Civil Partnership – Two Incomes | First €49,000 @ 20% Plus an amount equal to the lower income (subject to a maximum of €31,000) Balance @ 40% | First €51,000 @ 20% Plus an amount equal to the lower income (subject to a maximum of €33,000) Balance @ 40% |
| Emergency Basis of Tax – SCROP | 2023 | 2024 |
| Weekly | €770 | €808 |
| Monthly | €3,334 | €3,500 |
Personal Tax Credits
The following changes to tax credits will apply:
Single/ Widowed Person or Surviving Civil Partner Tax Credit
The Single/Widowed Person or Surviving Civil Partner tax credit will be increased by €100 from €1,775 to €1,875.
Married Couple or Civil Partnership Tax Credit
The married couple or civil partnership tax credit will be increased by €200 from €3,550 to €3,750.
Employee (PAYE) Tax Credit
The Employee (PAYE) tax credit will be increased by €100 from €1,775 to €1,875.
Earned Income Tax Credit
The Earned Income tax credit will be increased by €100 from €1,775 to €1,875.
Home Carer Tax Credit
The Home Carer tax credit will be increased by €100 from €1,700 to €1,800.
Single Person Child Carer Tax Credit
The Single Person Child Carer tax credit will be increased by €100 from €1,650 to €1,750.
Incapacitated Child Tax Credit
The Incapacitated Child Carer tax credit will be increased by €200 from €3,300 to €3,500.
Sea-going Naval Personnel Tax Credit
This tax credit of €1,500 will be extended for 2024.
Universal Social Charge (USC)
There is no change to the USC exemption threshold of €13,000.
The threshold for the 2% rate will be increased by €2,840 from €22,920 to €25,760. This will ensure that employees in receipt of the national minimum wage for up to 39 hours per week will remain outside the scope of the top rates of USC.
The 4.5% rate of USC will be reduced to 4% and will apply to income from €25,760.01 up to €70,044. For 2024, USC will apply at the following rates for those earning in excess of €13,000:
| Rate Bands | Rate |
| Up to €12,012 | 0.5% |
| Next €13,748 | 2% |
| Next €44,284 | 4% |
| Balance | 8% |
Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will continue to pay a maximum rate of 2% until the end of 2025.
The rate of 8% USC will continue to apply under the Emergency Basis.
Non-PAYE income in excess of €100,000 will continue to be subject to a 3% USC surcharge.
Benefit in Kind on Employer Provided Vehicles The tapering reduction in the original market value (OMV) of employer provided electric cars and vans will be extended as follows:
Tapered Reduction in OMV of Electric Vehicles:
| Reduction in OMV | Year |
| €35,000 | Up to 31 December 2025 |
| €20,000 | 2026 |
| €10,000 | 2027 |
The €10,000 temporary reduction in the OMV of company vans and category A to D company cars, which was introduced during 2023, will be extended until 31 December 2024. For electric vehicles, this temporary reduction is in addition to the tapered reduction in the OMV as outlined above.
Additionally, the 4,000 km reduction in the highest mileage band will be extended until 31 December 2024.
Share Based Remuneration
The Department of Finance plan to launch a public consultation on share-based remuneration. This is in recognition of the importance that companies place on share schemes as a way of retaining and rewarding employees and the globalisation of employees.