Michael Healy-Rae
Ceist:239. Deputy Michael Healy-Rae asked the Minister for Finance when the changes to income tax announced in budget 2023 are coming into effect; and if he will make a statement on the matter. [61749/22]
Amharc ar fhreagraTuesday, 13 December 2022
Ceisteanna (239)
Freagraí scríofa
I assume that the Deputy has in mind the personal income tax package changes announced in the Budget.
Budget 2023 brought forward a significant personal tax package with an estimated cost next year of over €1.13 billion. The Standard Rate Cut-Off Point is being increased by €3,200 from €36,800 to €40,000 for a single individual (8.7% increase), with commensurate increases in the bands applying to married persons and persons in civil partnerships. The main personal tax credits (personal credit, employee tax credit and earned income credit) are also being increased by €75 from €1,700 to €1,775 (4.4% increase). The home carer tax credit is also being increased €100 from €1,600 to €1,700 (6.3% increase).
Further, the 2% rate band ceiling for USC will also be increased in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.50 to €11.30 will remain outside the top rates of USC.
Legislative amendments to give effect to the above personal tax changes, from 1 January 2023, are provided for in Finance Bill 2022, which is currently progressing through the Houses of the Oireachtas. It is anticipated that Finance Bill 2022 will be enacted before end-December and the personal income tax changes will come into effect from 1 January 2023.