A number of tax changes announced in the Budget are coming into force next year.
A rise in the standard rate tax band and relief from working from home will benefit the public, while a steep rise in carbon tax will hit your pocket.
Ireland's corporation tax will also increase, affecting many business.
Meanwhile, a scheme that would see €100 taken off domestic electricity bills in the new year will go ahead as planned.
Here's all the new changes that will affect you in 2022:
Income Tax:
The rates of 20% and 40% will remain as they are, but the standard tax rate band, ie the amount you earn before paying the higher rate, will increase by €1,500.
Personal Tax Credit, Employee Tax Credit, Earned Income Tax Credit and the Widowed Person or Surviving Civil Partner (without dependent child) Tax Credit will all rise by €50.
Working from home:
The income tax relief for those working remotely will be available at 30% of vouched expenses for electricity, heating and internet services on the days you work from home.
Universal Social Charge:
The controversial USC ceiling will rise by €608 to €21,295. This means that the salary of a full-time minimum wage worker will remain outside the higher band.
Carbon Tax:
From May 2022, the carbon tax will increase by €7.50 per tonne of carbon dioxide emitted, from €33.50 to €41.00.
Vehicle Registration:
The Vehicle Registration Tax (VRT) will change as follows:
- 1% increase for vehicles between bands 9-12
- 2% increase for vehicles between bands 13-15
- 4% increase for vehicles between bands 16-20
PRSI:
The weekly income threshold for the higher PRSI rate will rise from €398 to €410.
VAT:
The lower VAT rate of 9% for the hospitality sector will continue until the end of August.
Corporation Tax:
Ireland's Corporation Tax will rise to 15% for businesses with turnover of over €750million.
Tobacco:
A tax that has already come into force, the cost of cigarettes has increased by €0.50.
A lot of other financial changes will also come into force in the new year, including:
- The minimum wage will increase to €10.50 per hour
- There will be a 2% rise in personal tax credit, employment tax credit, and earned income credit for self-employed people
- Social welfare payments will increase by €5
- The State pension payment will increase by €5
- The weekly rate for a qualified child will increase by €2 for children under 12 years of age. It will increase by €3 for children aged 12 years and over
- The income threshold for Fuel Allowance will increase by €20
- The Living Alone Increase will rise by €3
- Free GP care will be extended to children up to the age of 7
- The National Childcare Scheme universal subsidy will be extended to all children aged up to 15
- A new travel card for those aged 19 to 23 will be introduced, with cover of up to 50% off
- The threshold for the Drug Refund Scheme will also be lowered from €114 to €100.
