Dáil Éireann Debate, Thursday - 20 October 2016
95. Deputy Michael McGrath asked the Minister for Finance the change in the monetary value of the PAYE and personal tax credits in 2017, if they had been indexed in line with expected earnings growth and inflation; and if he will make a statement on the matter. [31418/16]
View answer96. Deputy Michael McGrath asked the Minister for Finance the change in the entry point to the top income rate for a single person, currently at €33,800, if it had been indexed in 2017 based on expected earnings growth and inflation; and if he will make a statement on the matter. [31419/16]
View answerI propose to take Questions Nos. 95 and 96 together.
The following table sets out the estimated nominal change in relation to the PAYE and personal tax credits in 2017. This is based on a technical assumption of indexation in line with expected earnings growth of 2.7% and inflation (HICP) of 1.3%. These were set out in my Department's Autumn forecasts in Budget 2017.
|
Tax Credits |
2016 Monetary Value |
Value in 2017 if indexed in line with expected earnings growth |
Value in 2017 if indexed in line with expected Inflation (HICP) |
|
PAYE Credit |
€1,650 |
€1,695 |
€1,670 |
|
Personal Credit |
€1,650 |
€1,695 |
€1,670 |
|
Married Credit |
€3,300 |
€3,390 |
€3,345 |
|
Widowed Persons Credit |
€1,650 |
€1,695 |
€1,670 |
|
Lone Parent Credit |
€1,650 |
€1,695 |
€1,670 |
|
Earned Income Credit |
€550 |
€565 |
€555 |
|
Home Carer Credit |
€1,000 |
€1,025 |
€1,015 |
|
Dependent Relative Credit |
€70 |
€70 |
€70 |
|
Incapacitated Child Credit |
€3,300 |
€3,390 |
€3,345 |
|
Blind Persons Credit |
€1,650 |
€1,695 |
€1,670 |
|
Age tax Credit |
€245 / €490 |
€250 / €505 |
€250 / €495 |
Figures are rounded to nearest €5.
In addition, the following table sets out the change in the single personal standard rate tax band, if it had been indexed in 2017, based on a technical assumption in line with the expected earnings and inflation (HICP) developments.
|
Standard Rate income tax band |
2016 Monetary Value |
Value in 2017 if indexed in line with expected earnings growth |
Value in 2017 if indexed in line with expected Inflation (HICP) |
|
Single persons standard rate tax band |
€33,800 |
€34,715 |
€34,240 |
Figures are rounded to nearest €5.
It is important to point out that the above calculations are prepared on a Pre-Budget 2017 basis, using the Revenue Commissioners Pre-Budget 2017 Income Tax ready reckoner.
