Budget 2025
The Apple Tax Windfall Budget!

Budget Overview

The coalition has made its multi-billion-euro pitch to voters ahead of the general election, with an €8.3bn Budget comprising €1.4bn in tax cutsand €6.9bn in new spending.

Finance Minister Jack Chambers said the changes to personal income taxes would support low and middle-income earners.

A range of tax changes and one-off measures announced in the Budget should leave most people better off.

Included in the raft of measures is an increase in the entry point for the higher rate of tax, a number of hikes in social welfare payments and a series of once-off payments to deal with the cost of living.

The Government is increasing the main tax credits – the personal, employee and earned income credits – by €125 each.

This means the maximum employee tax credit for 2025 will be €2,000 for a single person.

There is also a €2,000 increase in what is called the standard rate cut-off point. This means workers will be able to earn more before paying the top tax rate of 40% as the standard rate cut-off point goes from €42,000 to €44,000.

And Mr Chambers reduced the Universal Social Charge (USC) middle rate from 4% to 3%.

Pensions and Social Welfare

• Weekly social protection payments to increase by €12.
• “Baby boost” payment, parents of newborn given additional double child benefit payment in first month of the baby’s life.
• €400 lump sum payment for Working Family Payment recipients.
• Two double child benefit payments, in November and December of €280 per child.
• Self-employed people can now get Carer’s Benefit.
• Carers will receive an increased Carer’s Support Grant of €2000.
• A €200 Living Alone one-off payment.

Cost of Living Package

• €2.2 billion package overall.
• Reduced 9% VAT on electricity and gas extended until April 30th, 2025.
• €250 worth of energy credits split over two payments, one this year, other next year.

Taxation

• Income tax package worth €1.6 billion.
• USC cut for entry level to 3 %, rate increased by €1,622 to €27,382.
• Inheritance tax: Capital Acquisition Tax thresholds to increase
  from €335,000 to €400,000.
• Properties worth over €1.5 million to pay 6 % stamp duty.
• Lower rate of income tax band to rise from €42,000 to €44,000.

Housing

• Dpt of Housing given €7.8 bn, including €2bn towards 10,000 new-build
  social homes in 2025.
• €680 m allocated to schemes which would support the delivery of 6,400
  affordable homes.
• €1.6 bn continue to support 66,000 social housing tenancies alongside an additional
  7,400 social homes next year, as well as 38,000 social housing leases already in place.
• 10,000 new households under the Housing Assistance Payment and Rental Accommodation Schemes in 2025.

Landlords, Renters
and Mortgages

• Rent tax credit to rise by €250 to €1,000. and €2,000
  for a jointly assessed couple for 2025.
• Extension of the Help to Buy scheme to 2029.
• Extension of mortgage interest relief to 2025.
• Landlord letting extension scheme extended.

Childcare and Education

• Free schoolbooks up to Leaving Cert.
• Student and apprentice fees to be reduced by €1,000 in this academic year.
• Hot school meals programme increases to all primary schools.
• Junior Cert and Leaving Cert fees waived.
• National Childcare Scheme to increase by 44%, resulting in a reduction in
  full-time childcare costs by €1,100.

Long-term Investment

• €1.25bn of additional funding for the Land Development Agency.
• €3bn from sale of State’s AIB shares for infrastructure spending.
• €750m for further development of electricity grid infrastructure.

Health

• Additional €2.7 billion to be given to health sector over two years.
• 495 new beds to be introduced in hospital and community services.
• Exemption from income, capital gains and capital acquisitions taxes on
  payments to women impacted by Cervical Check screening failures.
• Continued support for women’s health measures, including increased access to
  IVF and Hormone Replacement Therapy free of charge.

Climate

• €3 billion package to be set aside for climate transition between 2026 and 2030.
• VAT on heat pump installation to be reduced to 9 %
• Carbon tax rate per tonne of carbon dioxide emitted for petrol and diesel will go up
  €7.50, from €56 to €63.50, from October 9th.
• €90 million will be made available to retrofit social homes for 2025.

Public Transport
and Infrastructure

• €3.9 billion package.
• Free public transport expanded for all children under the age of 9.
• €99 million for development of the Port of Cork.
• Free public transport for those aged between 5 and 9.
• New universal companion pass for people aged over 70 to bring
  a friend on public transport.

Agriculture

• Over €2 billion to the department of agriculture next year.
• €13 million for new tillage scheme.
• €10 million for animal health measures.
• €8 million to enhance payment rates of national beef welfare scheme.

Business

• From Jan 1, the national minimum wage will increase by €0.80 per hour
  to €13.50 per hour.
• An increase in the small gifts exemption from €1,000 to €1,500 for an employer to provide limited non-cash benefits to workers.
• An extension of the Bank Levy for a further year, with a target yield of €200m.
• Extension to 2026 of the Employment Investment Incentive, the Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive.
• CGT Retirement Relief retaining the increased upper age limit and intro of a
  clawback period of 12 yrs for relief available for disposals over €10m,
  after which the CGT will be abated.
• An increase in the first-year payment threshold in the R&D tax credit,
  from €50,000 to €75,000

Justice and Defence

• €3.9 billion allocated to Justice sector including provision for recruitment
  of further 1,000 gardaí and 350 prison officers.
• International protection processing system to be expanded with hiring
  of 400 additional staff.
• Net increase of 400 new Defence Forces personnel in 2025

Alcohol, Cigarettes, Vaping

• €1 increase in excise duty on packet of 20, bringing cost to €18.05 from midnight.
• Tax to be introduced from mid-2025 of 50 cent per ml of eliquid, bringing typical
  price of disposable device to €9.23.
• No increase to alcohol excise duty.

Tax Credits for year 2025

Income Tax Rates 2025

Income Exemption Limits

Universal Social Charge

PRSI

Please note that this Budget Briefing is merely a general guide and should not be used as a substitute for professional financial advice. Decision making should be based on sound professional advice, taking into account your individual circumstances. While we have made every effort to ensure the accuracy of this Budget Briefing, we do not take any responsibility or liability for any omissions or errors, losses or injuries cause.