Irish Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe have unveiled 2024 Budget. While there are significant number if changes around income tax, landlords, schools, public transport, and many more, this blog will discuss how your personal income tax will be affected in the measures announced.

There are significant tax relief measures announced which will help people to keep more money in pockets than they did in 2023. Irish personal income tax system has 2 main brackets, 20% and 40%.
Individuals earning up to 40,000€ per annum are liable to pay 20% income tax and 40% tax for income over 40,000€.  So, if you are earning, for example, 45,000€ annually, you will pay 20% on 40,000€ and 40% on the remaining 5,000€ (45,000-40,000). It often gets confusing for some people and they miscalculate their tax liability assuming 40% will be charged on the entire 45,000€

In simple terms, 40% is applicable to the amount over and above 40,000€, everybody pays 20% up to 40,000€.

The cost of living has been all over the news lately due to various internal & external factors, some like Russia Vs Ukraine, Israel Vs Palestine, etc. It has affected most of the European countries adversely and the rate of inflation has skyrocketed.

Now, the latest budget has aimed to provide some relief by increasing the 40,000€ threshold to 42,000€ which directly benefits employees with 400€ additional residual income in 2024.

Along with the increase in standard income tax rate cut off point, Personal, Employee PAYE and earned income tax credits will increase by €100 each as well.

So, in total 400€ + 100€= 500€ additional income tax savings going forward from 2024 onwards. Hoorayy!!!

PRSI & USC


In Ireland, along with Income tax, you also pay Universal Social Charge (USC) and Pay related social insurance (PRSI) on your gross salary.

PRSI is charged at 4% on your gross salary, while USC has different categories for different levels on income.

Below table lists USC rates as of 2023 tax year. For earnings up to 12,012€, USC is charged 0.50%, for the next 8,472€, USC is charged at 2%, for next 19,056€, USC is charged at 4.50% and 8% USC above that income.



In 2024, there is some relief in 4.50% category, that has been brought down to 4%, which will help in saving another 100€ annually.

So, in the 2024 budget, you can potentially have  approximately 600€ more in your pocket than you had in 2023.
400€- Income Tax savings
100€- Increase in Tax Credits
100€- Reduction in USC

Rent Tax Credits


Along with above savings, there is a very important credit given to people renting accommodations in Ireland in lieu of the rising housing crisis and increased rents.

In 2023, the rental tax credit was 500€, which is now increased to 750€ in 2024. So, you can add an extra 250€ savings on top of your personal tax savings

For understanding tax credits, reliefs, exemptions, visit Revenue.ie for more information or you can drop a comment or contact us for more information.


Minimum Wage Increase-12.70€ an hour!!


A good news for everybody who is planning to take up part time work during college, or aiming to work on hourly basis. The minimum wage in 2023 is 11.30€ per hour, it is going up by 1.40€ an hour from 1st January 2024. Minimum wage in Ireland will be 12.70€ an hour which means students can earn around 260€ a week and over 2000€ a month in summer breaks.
If you would like to know more about part time opportunities in Ireland, read more about my blog on Part-Time opportunities.

To calculate your income tax liability, you can also use PWC income tax calculator which will aid you in calculating your take home pay in 2024.