Budget 2024

Oct 10, 2023 | Cathal McCabe

Executive Summary

This year’s Budget has been framed against a backdrop of global uncertainty both economical and geopolitical. Headline inflation for the year is estimated to be 5.25%, falling to 2.9% in 2024 while the economy is projected to grow by 2.25% in 2023 and 2024.

A summary of the main measures which may impact on individuals directly is outlined below. This document is intended as a summary of the key components of Budget 2024 that might impact you, your family and business.

Taxation Measures

[1] Personal Tax

  • The standard rate band has been increased by €2,000 for all earners.
  • The Personal / Employee and Earned income credit have been increased by €100.
  • USC rate of 4.5% reduced to 4%.
  • No headline changes to CGT/CAT rates or thresholds.

Income Tax Rates & Band’s

Standard Rate20%20%
Higher Rate40%40%
Single-person standard rate band€40,000€42,000
Married couple, one income standard rate band€49,000€51,000

USC Rates & Bands

USC Band’sRate
€0- €12,0120.5%
€12,013- €25,7602%
€25,761 – €70,0444%

Income Tax Credits

Personal tax credit€1,775€1,875
Employee tax credit€1,775€1,875
Earned income credit€1,775€1,875

[2] Housing

  • Extension of Help to Buy scheme for First Time Buyers until the end of 2025.
  • Increase in rent tax credit to €750 for private tenants. Parents can now claim the credit on behalf of children who have tenancies in rent a room or digs accommodation.
  • Temporary tax relief for landlords. For 2024 the first €3,000 will be exempt from income tax rising to €4,000 in 2025 and €4,000 in 2026 & 2027. This relief will be subject to conditions.
  • Temporary mortgage interest relief [capped @ €1,250] will apply to variable rate and tracker rate mortgages. The relief will apply to the increased interest cost paid in 2023 compared to 2022 for certain mortgages.
  • Vacant homes tax will increase to 5 times the Local Property Tax levy.

[3] Business & Entrepreneur’s

  • Retirement Relief – proposed increase in the upper age limit from 65 to 70. The reduced relief will now apply from age 70. This will come into effect in 2025.
  • A new capital gains tax relief for angel investors will be introduced.
  • Vat registration thresholds to increase to €40,000 and €80,000 respectively.

[4] Pensions / Investments

  • No changes were announced to pension tax relief or thresholds.
  • No changes were announced to DIRT rates.

[5] VAT

  • VAT rate on newspapers reduced to 0%.
  • VAT rate for the hospitality industry will be restored to the 13.5% rate in March 2023.
  • Flat rate for farmers reduced from 5.5% to 5%.

Cost of Living Measures

[1] Energy Assistance

  • Electricity energy credit of €450 to be paid to households in three installments of €150 over the coming months.
  • An additional lump sum fuel allowance of €300 is to be paid to fuel allowance recipients.
  • 9% VAT rate for electricity and gas bills extended until 2025.

[2] Social Welfare Measures

  • Once off double week “Cost of Living Support” payment to all social welfare recipients which will be made in January. This payment is in addition to the Christmas bonus.
  • Double child benefit payment to all qualifying households in December.
  • Once-off lump sum payment of €200 to those in receipt of the Living Alone Allowance.
  • State Pension will increase by €12 a week.

[3] Childcare Measures

  • Reduction of 25% in childcare costs from September 2024.
  • Free schoolbooks at the junior cycle in secondary school.


Please note that this is a general summary and no action should be taken without taking detailed advice.

Telephone:01 491 4132
Office:192-194 Harold’s Cross, Dublin D6W AP86

Cathal McCabe