Income tax package takes effect from tomorrow - Donohoe

The Minister for Finance Paschal Donohoe TD has today (Friday) reminded income tax payers that the income tax package announced as part of the Budget in October will take effect from tomorrow, 1 January 2022.

Speaking today Minister Donohoe said:

"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.

"The €50 increase in each of the main tax credits - personal tax credit, employee tax credit and the earned income credit will also take effect.

"In relation to Universal Social Charge, the 2% rate band ceiling will also increase in line with the increase in the national minimum wage from €10.20 to €10.50 per hour to ensure that a full time worker who benefits from the wage increase will remain outside the top rate of USC.

"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."

ENDS