Income tax

The threshold for the higher rate of income tax (40%) has increased by €750.  From €34,550 (2018) to €35,300 (from January 2019) for single individuals and an increase from €43,550 to €44,300 for married couples with one earner.

The Home Carer Tax Credit has increased from €1,200 to €1,500.

The Earned Income Tax Credit for self-employed people is now €1,350. An inrease of €200 since 2018.

VAT

The VAT rate for the tourism sector is now 13.5% (from 1 January 2019) instead of 9%.

The rate for newspapers and sporting facilities is unchanged at 9%. The VAT rate for e-books and electronically supplied newspapers were reduced from 23% to 9% (from 1 January 2019).

Local Property Tax (LPT)

A review of the Local Property Tax is currently underway and an update will be provided later this year.

Universal Social Charge (USC)

The 4.75% rate of USC was reduced to 4.5%.

The ceiling of the 2% band has increased from €19,372 to €19,874, so that the salary of a full-time worker on the minimum wage remains outside the higher rates of USC.

Incomes of €13,000 or less continue to be exempt from USC in 2019. Once your income is over this limit, the following rates apply (from 1 January 2019):

• €0 to €12,012 @ 0.5%
• €12,012 to €19,874 @ 2%
• €19,874 to €70,044 @ 4.5%
• €70,044+ @ 8%
• Self-employed income over €100,000: 3% surcharge.

The weekly income threshold for the higher rate of employer’s PRSI is now €386 (€376 previously) to ensure that there is no incentive to reduce the working hours for a full-time employee on the increased minimum wage.

Capital Acquisitions Tax (CAT)

The Group A tax-free threshold, which applies primarily to gifts and inheritances from parents to their children, has increased from €310,000 to €320,000. This increase applies to gifts or inheritances received on or after 10 October 2018.

Stamp duty

The exemption for young trained farmers from stamp duty on agricultural land transactions continues for another 3 years to the end of 2021.

Excise duties

Tobacco products tax

From midnight on 9 October 2018, the excise duty on a packet of 20 cigarettes has increased by 50 cent (including VAT) with a pro-rata increase on other tobacco products. There will be an additional 25 cent on roll-your-own tobacco.

There is an increase in the minimum excise duty on tobacco products, so that all cigarettes sold below €11 have the same excise applied as those sold at €11 and above.

Betting duty

The duty on bets placed by customers in the State has increased from 1% to 2% for bookmakers, and from 15% to 25% on the commissions earned by betting intermediaries.

You can find more details on this years budget and rates here