Changes in Income Tax Rates

Income tax rates will remain at 20% and 40%, but there will be increases to tax credits and changes to the income tax bands for 2023.

The standard rate tax band will be increased by €3,200 to €40,000 for a single person and to €49,000 for married couples with one earner.

The following tax credits will increase by €75 to €1,775:

Personal Tax Credit
Employee Tax Credit
Earned Income Tax Credit

The ceiling for the 2% Universal Social Charge (USC) band will increase from €21,295 to €22,920. This is in line with the 80 cent per hour increase in the national minimum wage from 1 January 2023 which ensures that full-time employees on the minimum wage will remain outside the higher rates of USC.

Rent Tax Credit

If you are paying for private rented accommodation, you can claim a new Rent Tax Credit of €500 a year for 2022 and subsequent years. This tax credit applies to each tenant rather than each tenancy. For rent you pay in 2022, you will be able to claim this credit early in 2023.