Revealed — What Budget 2024 tax breaks mean for your wallet
Find out how Budget 2024 affects your bottom line with the Taxback calculator.
After weeks of speculation, Budget 2024 is officially here.
And the good news is that every worker in Ireland can expect to pay less tax next year.
The tax cuts mean a worker earning €50,000 a year will have an extra €800 next year, while a person earning €75,000 will be up €900.
Minister for Finance Michael McGrath and Public Expenditure Minister Paschal Donohoe have announced a €1.1bn tax package which includes an increase in the standard tax rate band from €40,000 to €42,000.
That means that employees can earn an extra €2,000 before paying tax at the higher rate of 40%.
The government has also announced that USC will be cut in the new year.
The 4.5% rate of USC has been cut to 4% – the first change to this tax in 5 years.
The ceiling for the lower 2 per cent rate of Universal Social Charge will go up by €2,840, meaning it will apply on earnings up to €25,760.
Meanwhile, the Rent Tax Credit is set to rise by €250.
This means, if you’re a single individual and you pay to rent your property, you’re now entitled to a tax credit worth €750. Married couples can claim €1,500.
But what does the Budget 2024 announcement mean for your pocket?
Taxback have created a handy Budget 2024 calculator which will quickly provide you with a snapshot of how your take home pay is affected.
The calculator will also indicate whether you are entitled to reclaim any overpaid tax from recent years…not bad!
You can try the calculator below.
Thousands of Irish people are missing out on unclaimed taxes amounting to a staggering €1,880 every year because they don’t understand their entitlements.
This is the stark message from Taxback - the Irish headquartered firm providing tax filing and refund services to Irish customers for more than 25 years.
There are a wide range of tax reliefs available to Irish workers. Exactly what you can claim will depend on your personal circumstances. The Taxback team has illustrated five of the most common types of tax relief below.
Learn more about your tax refund here.
This tax credit, which specifically targets renters, was originally introduced in Budget 2023.
Increased by €250 this year, this credit is now worth €750 per year for a single individual and €1,500 for a married couple.
It is understood that nearly 400,000 people will be eligible to apply for it, and the credit is backdated to include rent paid in 2022.
Tax relief is available at 20% on the cost of many different types of common medical expenses (such as visits to the GP, Consultant or physio and prescription costs).
Other areas where refunds are due include prescriptions, ambulance calls, physiotherapy, diagnostic procedures and maternity care. Tax back can also be claimed on certain non-routine dental expenses such as orthodontic and root canal treatments.
Similarly, the substantial costs associated with long-term care in a nursing home can mean refunds of up to 40% for either an individual or a loved one.
Married couples, of which there are over 1.7 million in Ireland, may also have potential refunds due, depending largely on how much a working couple earns. In the year you're married, both you and your spouse will continue to be treated as single people for tax purposes.
So if you got married in 2022, for example, you may now be due a refund if the tax you paid as two single people is greater than the tax payable if you were taxed as a married couple.
Savings can also be made if both are working, but only one pays tax at the higher rate, or if one spouse has unused credits due to low income or cares for children in the home.
Flat Rate Expenses are available to thousands of Irish employees who work in a variety of different jobs, from bar staff to nurses and from teachers to firefighters. These expenses are designed to cover common work-related costs such as tools, uniforms and stationery.
How much you will be able to claim will depend on your personal circumstances. For example, electricians can claim €153, dentists are due €376, while nurses can claim €733.
There is tax relief available for home workers too.
If you worked from home in 2023, you can apply for a tax refund on your home heating, electricity and broadband bills.
Apply for your tax refund in minutes online.
Taxpayers are free to apply for their refund themselves — but Taxback simplifies the process of claiming your maximum rebate. They will analyse your tax situation, ensure you are receiving every credit, relief, and expense you're due and manage the paperwork for you.
They will even transfer your refund straight to your bank account.
And the best part? Taxback offer a 'no refund, no fee' service which means it can't hurt to check if you're due a refund!
It takes a matter of minutes to kick-off your refund application. Simply register with Taxback here to get started
- Your maximum tax refund guaranteed — average PAYE refund €1,880
- Full four-year tax review
- Simple online process — no complicated forms
