Budget 2020
Summary
Tax Credits, Reliefs and Rates for the Tax Years 2019 and 2020
The following is a summary of Budget 2020 and is not intended to be a comprehensive guide. Simply click on the section in the table below for more details.
|
Section |
Observations at a Glance |
|
| 1 | Tax Rates / Credits | Self- employed / company directors ‘Earned Income’ tax credit increased from €1,350 from €1,500 pa; Home carers tax credit increased from €1,500 from €1,600 |
| 2 | PRSI / USC rates | No changes to PRSI or USC rates / bands. A one year extension of reduced rate of USC for medical card holders |
| 3 | Personal Tax | No changes to personal tax rates / bands |
| 4 | Business Tax |
No change to VAT / Corporation Tax rates Increase in Dividend Withholding Tax (DWT) rate from 20% to 25%. |
| 5 | Capital Taxes | Class A tax free threshold increased from €320,000 to €335,000 for gift / inheritance tax from 9th October 2019. |
| 6 | Property Taxes | Increase in stamp duty in respect of non-residential property from 6% to 7.5% from midnight 8th Oct 2019. Transitional measure whereby the old rate will apply to instruments executed before 1st January 2020. |
| 7 | Indirect Taxes | Increases of €0.50c in pk 20 Cigarettes from midnight 8th October 2019 with pro-rata increase on other tobacco products |
| 8 | Pensions | No measures announced in private pensions |
| 9 | Social Welfare |
One parent family payment and Jobseekers transition income disregards up by €15 per week Working family payment income threshold will increase by €10 per week for families upto 3 children. Living alone allowance up by €5 per week: Fuel allowance up by €2 per week Free GP scheme to be expanded to children under 8 years. Fee dental care for children under 6 years |
1. Rates / Credits
| Personal Tax Credits |
2019 |
2020 |
| Single Persons |
1,650 |
1,650 |
| Married / Civil Partnership |
3,300 |
3,300 |
| Additional one-parent family |
1,650 |
1,650 |
| PAYE |
1,650 |
1,650 |
| Age credit -Single |
245 |
245 |
| Age credit-Married |
490 |
490 |
| Home carer |
1,500 |
1,600 |
| Non PAYE earners tax credit |
1,350 |
1,500 |
| Rent Relief: | ||
| Under age 55 single persons |
200 |
200 |
| Under age 55 married / civil partnership |
400 |
400 |
| Over age 55 single persons |
400 |
400 |
| Over age 55 married / civil partnership |
800 |
800 |
| Service charges |
N/A |
n/a |
| Incapacitated child |
3,300 |
3,300 |
| Blind persons: | ||
| Single |
1,650 |
1,650 |
| Married / civil partnership (both blind) |
3,300 |
3,300 |
| Widowed additional credit |
540 |
540 |
| Widowed person bereaved in year assessment |
3,300 |
3,300 |
| Widowed parent: | ||
| 1st year after year of bereavement |
3,600 |
3,600 |
| 2nd year after year of bereavement |
3,150 |
3,150 |
| 3rd year after year of bereavement |
2,700 |
2,700 |
| 4th year after year of bereavement |
2,250 |
2,250 |
| 5th year after year of bereavement |
1,800 |
1,800 |
| Exemptions limits age 65 and over | ||
| Single / widowed/surviving civil partner |
18,000 |
18,000 |
| Married / civil partnership |
36,000 |
36,000 |
| Standard Rate Bands | ||
| Single / widowed/surviving civil partner |
35,300 |
35,300 |
| Married couples, one income |
44,300 |
44,300 |
| Married couples, two incomes |
70,600 |
70,600 |
| One parent / widowed parent |
39,300 |
39,300 |
| Tax rates | ||
| Standard rate |
20% |
20% |
| Top rate |
40% |
40% |
2. PRSI / USC Rates
| PRSI |
2019 |
2020 |
| Employee ceiling |
No limit |
No limit |
| Employee PRSI exemption |
No exemption |
No exemption |
| Employee PRSI rate |
4% |
4% |
| Employer PRSI (higher rate) |
10.95% |
10.95% |
| Employer PRSI (lower rate) |
4.25% |
4.25% |
| Self employed ceiling |
No limit |
No limit |
| Self employed minimum contribution |
€500 |
€500 |
| Self employed PRSI rate |
4% |
4% |
| Universal Social Charge (USC) | ||
| Exemption limit |
13,000 |
13,000 |
| Band 1 (0- 12,012) |
0.5% |
0.5% |
| Band 2 (12,013 – 19,874) |
2% |
2% |
| Band 3 (19,875 – 70,044) |
4.50% |
4.50% |
| Incomes in excess of €70,044 |
8% |
8% |
| Self employed income >100,000 |
Surcharge 3% |
Surcharge 3% |
| Aged 70 and over & medical card holders Income less than €60K |
1% / 3% |
1% / 3% |
3. Personal Tax
Standard Rate Band: No changes
Top Rate of Income Tax: No changes. Rate remains at 40%.
Earners tax credit: Tax credit increased from €1,350 to €1,500 pa for earned income (self-employed, company directors).
Universal Social Charge (USC): No changes to USC rates / bands
PRSI: No changes to PRSI rates / bands
4. Business Tax
Value Added Tax (VAT): No changes to VAT rates
Corporation tax: No changes to Corporation rates
BREXIT: €650m (€200m of which in 2020) for BREXIT related support in the Agricultural , Enterprise and Tourism sectors; €5m available to Micro Finance Ireland and €5m for Local Enterprise Offices Emergency BREXIT fund.
5. Capital Taxes
Capital Acquisitions Tax (CAT): Class A lifetime tax free threshold (parent to child) increased from €320,000 to €335,000.
6. Property / housing
- Increase in stamp duty in respect of non-residential property from 6% to 7.5% from midnight 8th Oct 2019. Transitional measure whereby the old rate will apply to instruments executed before 1st January 2020.
- Extension in the present format of Help to Buy scheme until 31st December 2021
- €2.5 billion to the Housing Programme in 2020. €1.1 billion allocated to support delivery of 11,000 new social housing homes in 2020.
- An additional €80 million for the Housing Assistance Payment scheme
7. Indirect Taxes
Alcohol: No changes announced.
Tobacco: Increase of 50c on a packet of 20 cigarettes from midnight.
Motoring:
- Increase in carbon tax by €6 per tonne to €26 per tonne
- Extension of VRT relief for hybrids and plug -in hybrid electric vehicles
8. Pensions
Tax relief for pension contributions: Remains at marginal tax rate.
9. Social Welfare / Health
- Reduction of €0.50 for prescription charges for all persons
- Medical card income thresholds for people over 70 increased by €50 for single person / €150 for a couple per week.
-
One parent family payment and Jobseekers transition income disregards up by €15 per week
Working family payment income threshold will increase by €10 per week for families up to 3 children.
Living alone allowance up by €5 per week:
Fuel allowance up by €2 per week
Free GP scheme to be expanded to children under 8 years. Fee dental care for children under 6 years