The coalition has made its multi-billion-euro pitch to voters ahead of the general election, with an €8.3bn Budget comprising €1.4bn in tax cuts and €6.9bn in new spending.

Finance Minister Jack Chambers said the changes to personal income taxes would support low and middle-income earners.

A range of tax changes and one-off measures announced in the Budget should leave most people better off. Included in the raft of measures is an increase in the entry point for the higher rate of tax, a number of hikes in social welfare payments and a series of once-off payments to deal with the cost of living.

The Government is increasing the main tax credits – the personal, employee and earned income credits – by €125 each.

This means the maximum employee tax credit for 2025 will be €2,000 for a single person. There is also a €2,000 increase in what is called the standard rate cut-off point. This means workers will be able to earn more before paying the top tax rate of 40% as the standard rate cut-off point goes from €42,000 to €44,000.

And Mr Chambers reduced the Universal Social Charge (USC) middle rate from 4% to 3%

PENSIONS & SOCIAL WELFARE

• Weekly social protection payments to increase by €12
• “Baby boost” payment, parents of newborn given additional double child benefit payment in first month of the baby’s life
• €400 lump sum payment for Working Family Payment recipients
• Two double child benefit payments, in November and December of €280 per child
• Self-employed people can now get Carer’s Benefit
• Carers will receive an increased Carer’s Support Grant of €2000
• A €200 Living Alone one-off payment

COST OF LIVING PACKAGE

• €2.2 billion package overall
• Reduced 9% VAT on electricity and gas extended until April 30th, 2025
• €250 worth of energy credits split over two payments, one this year, other next year
• Additional €200 for recipients of the living alone allowance

TAXATION

• Income tax package worth €1.6 billion
• USC cut for entry level to 3 %, rate increased by €1,622 to €27,382
• Inheritance tax: Capital Acquisition Tax thresholds to increase from €335,000 to €400,000
• Properties worth over €1.5 million to pay 6 per cent stamp duty
• Lower rate of income tax band to rise from €42,000 to €44,000

HOUSING

• Dpt. of Housing given €7.8bn, including €2bn towards 10,000 new-build social homes in 2025
• €680m allocated to schemes which would support the delivery of 6,400 affordable homes
• €1.6bn continue to support 66,000 social housing tenancies alongside an additional 7,400 social homes next year, as well as 38,000 social housing leases already in place
• 10,000 new households under the Housing Assistance Payment and Rental Accommodation Schemes in 2025

LANDLORDS, RENTERS & MORTGAGES

• Rent tax credit to rise by €250 to €1,000 and €2,000 for a jointly assessed couple for 2025
• Extension of the Help to Buy scheme to 2029
• Extension of mortgage interest relief to 2025
• Landlord letting extension scheme extended

BUSINESS

• From Jan 1, the national minimum wage will increase by €0.80 per hour to €13.50 per hour.
• An increase in the small giſts exemption from €1,000 to €1,500 for an employer to provide limited non-cash benefits to workers
• Raising VAT registration thresholds that apply for the supply of goods and services, to €85,000 and €42,500 respectively
• An extension of the Bank Levy for a further year, with a target yield of €200m
  • Extension to 2026 of the Employment Investment Incentive, the Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive
• CGT Retirement Relief retaining the increased upper age limit and intro of a clawback period of 12 yrs for relief available for disposals over €10m, after which the CGT will be abated
• An increase in the first-year payment threshold in the R&D tax credit, from €50,000 to €75,000

Click here to download the full Budget 2025 Briefing

for additional details on:

• Childcare & Education
• Long Term Investment
• Health
• Climate
• Public Transport & Infrastructure
• Agriculture
• Justice & Defense
• Alcohol, Cigarettes, Vaping
• Tax Credits
• Income Tax Rates 2025
• Income Exemption Limits
• Universal Social Charge
• PRSI

Please note that this Budget Briefing is merely a general guide and should not be use as a substitute for professional financial advice. Decision making should be based on sound professional advice, taking into account your individual circumstances. While we have made every effort to ensure the accuracy of this Budget Briefing, we do not take any responsibility or liability for any omissions or errors, losses or injuries cause.