Budget 2018 – Summary of the main changes
Standard Rate Income Tax Bands
The Standard Rate Income Tax Band will increase by €750 from 1st Jan 2018.
20% Rate 40% Rate
Single Person €34,550 Balance
Married/Civil Partner(with one income) €43,550 Balance
Married/Civil Partner(with two income)* €69,100 Balance
Married/Civil Partners with two incomes can avail of €34,550 by 2 = €69,100 or €43,550 plus up-to €25,550 = €69,100 at 20% rate of income tax. Any balance will be taxed at 40%.
Capital Acquisitions Tax (No Change)
Group A : lifetime tax-free threshold applying to gifts and inheritances from parents to children is €310,000,
Group B lifetime tax-free threshold applying to gifts and inheritances made to parents, siblings, nieces, nephews or grandchildren is €32,500.
Group C lifetime tax-free threshold applying to gifts and inheritances made to all others (except spouses and civil partners who are exempt) is €16,250.
(The thresholds apply to all gifts and inheritances received since 5th Dec 1991.)
The state pension will rise by €5 per week from March 2018. The new top rate will be €243.30 per week.
A reduced rate of Deposit Interest Retention Tax (DIRT) of 37%
Universal Social Charge
(rates from 1st Jan 2018)
Employee Self Employed
Income up to €12,012 0.5% 0.5%
Between €12,013 and €19,372 2.0% 2.0%
Between €19,373 and €70,044 4.75% 4.75%
Between €70,045 and €100,000 8% 8%
Income in excess of €100,000 8% 11%
Earned Income Tax Credit (Self Employed )
It will be increased to €1,150
Stamp Duty on Commercial Property
The rate will increase from 2% to 6% from midnight 10th Oct 2018