Tax Credits, Reliefs and Rates for the Tax Years 2019 and 2018
The following is a summary of Budget 2019 and is not intended to be a comprehensive guide. Simply click on the section in the table below for more details.
Observations at a Glance
|1||Tax Rates / Credits||Self- employed / company directors ‘Earned Income’ tax credit increased to €1,350 from €1,150 pa; Home carers tax credit increased to €1,500 from €1,200|
|2||PRSI / USC rates||Increase in 2nd USC band to €19,874: Decrease in 3rd USC rate to 4.5%: Entry level for higher rate for Employers’ PRSI rate increased to €386 pw.|
|3||Personal Tax||Increase in standard tax band by €750 (€35,300 for single person / €44,300 married one earner).|
|4||Business Tax||9% Tourism VAT rate increased to 13.5%. Minimum wage to increase to €9.80 ph from 1st January 2019.|
|5||Capital Taxes||Class A tax free threshold increased from €310,000 to €320,000 for gift / inheritance tax.|
|6||Property Taxes||Increase in loan interest relief to 100% for residential rental properties from 1st January 2019.|
|7||Indirect Taxes||Increases of €0.50c in pk 20 Cigs|
|8||Pensions||No measures announced in private pensions|
|9||Social Welfare||Increases of €5 pw in all Social Welfare benefits / pension from March 2019 plus bonus Christmas 2018.|
1. Rates / Credits
|Personal Tax Credits||
|Married / Civil Partnership||
|Additional one-parent family||
|Age credit -Single||
|Non PAYE earners tax credit||
|Under age 55 single persons||
|Under age 55 married / civil partnership||
|Over age 55 single persons||
|Over age 55 married / civil partnership||
|Married / civil partnership (both blind)||
|Widowed additional credit||
|Widowed person bereaved in year assessment||
|1st year after year of bereavement||
|2nd year after year of bereavement||
|3rd year after year of bereavement||
|4th year after year of bereavement||
|5th year after year of bereavement||
|Exemptions limits age 65 and over|
|Single / widowed/surviving civil partner||
|Married / civil partnership||
|Standard Rate Bands|
|Single / widowed/surviving civil partner||
|Married couples, one income||
|Married couples, two incomes||
|One parent / widowed parent||
2. PRSI / USC Rates
|Employee PRSI exemption||
|Employee PRSI rate||
|Employer PRSI (higher rate)||
|Employer PRSI (lower rate)||
|Self employed ceiling||
|Self employed minimum contribution||
|Self employed PRSI rate||
|Universal Social Charge (USC)|
|Band 1 (0- 12,012) for 2019||
|Band 2 (12,013 – 19,874) for 2019||
|Band 3 (19,875 – 70,044) for 2019||
|Incomes in excess of €70,044||
|Self employed income >100,000||
|Aged 70 and over & medical card holders Income less than €60K||
1% / 3%
|1% / 3%|
3. Personal Tax
Standard Rate Band: Stand tax band increased by €750 for all taxpayers. Standard tax rate remains at 20%.
Top Rate of Income Tax: No changes. Rate remains at 40%.
Earners tax credit: Tax credit increased from €1,150 to €1,350 pa for earned income (self-employed, company directors).
Universal Social Charge (USC):
- Rate 2 band increased from €19,372 to €19,874.
- 3rd USC rate reduced to 4.5% from 4.75%
PRSI: Employers PRSI weekly exemption amount increased from €376 to €386 pw.
Rental interest relief: Relief increased to 100% (from 80%) of qualifying interest in respect of borrowings to purchase, improve & maintain rented residential properties from 1st January 2019 .
4. Business Tax
Value Added Tax (VAT): 9% (hospitality / tourism) VAT rate increased to 13.5% from January 2019. Electronic publications VAT rate reduced from 23% to 9% in line with printed newspapers.
Corporation tax: First 3 year exemption from corporation tax for start up companies extended to 2021. Film Corporation tax credit will be extended beyond the current end date of 2020, until December 2024.
Farming, Agri & Fishing Sector: €60m for BREXIT related support will be provided to improve resilience in the farm sector; Renewal of existing stock relief measures for further 3 years; A future growth scheme for SME’s and Argi / food sector is being launched providing upto €300m.
5. Capital Taxes
Capital Acquisitions Tax (CAT): Class A lifetime tax free threshold (parent to child) increased from €310,000 to €320,000.
6. Property / housing
- Increase in loan interest to 100% (from 80%) from 1st January 2019 for loans to purchase, improve and maintain residential rental properties.
- Allocation of €2.3 billion to the housing programme in 2019.
- €121m to Housing Assistance Payment (HAP) to provide an additional 16,760 new tenancies
- €1.25 billion for 10,000 new social housing to be purchased / built / leased in 2019
7. Indirect Taxes
Alcohol: No changes announced.
Tobacco: Increase of 50c on a packet of 20 cigarettes from midnight.
- Extending VRT relief for hybrid vehicles until end of 2019.
- Providing for a 1% surcharge for diesel vehicles to apply across all VRT bands.
- To encourage the uptake of gas-propelled commercial vehicles as an alternative to diesel a new accelerated capital allowances scheme for gas-propelled vehicles and refuelling equipment is being introduced.
Tax relief for pension contributions: Remains at marginal tax rate.
9. Social Welfare / Health
- Increase in ALL benefits / state pensions of €5 per week from March 2019.
- Christmas bonus restored to all benefits to be paid this Christmas.
- Increase in earnings disregarded for One Parent family payment from March 2019
- Reduction to €1.50 (from €2) for prescription charges for medical card holders over age 70
- €25 increase in the weekly income thresholds for GP visit cards
- Drugs Payment Scheme threshold to be reduced to €124 from €134 per month
- New paid parental leave scheme to be introduced from November 2019 to provide two extra weeks leave to every parent of a child in their first year.