Budget 2021 Summary

There has been no change in income tax rates and bands for 2021. However, two tax credits are increased:

  • earned income tax credits for the self-employed and proprietary directors increased by €150 to €1650 for 2021
  • the dependent relative tax credit increases by €145 to €245 for 2021
  • the 2% USC band will be increased in 2021 from €8472 to €8675
  • no change announced in the DIRT rate of 33%, exit tax rate of 41% or in the 1% life assurance premium levy
  • no state pension increases for 2021 but
    • the living alone allowance increase by €5 p/w to €19p/w
    • the Christmas bonus of 100% of the weekly rate of state pension will be paid in early December 2020
  • the state pension age will remain at 66 for those reaching 66 in 2021
  • no change in CAT rates or threshold amounts
  • no change in CGT rate
  • no change in private pension tax reliefs, limits, or taxation of benefits
  • no change in PRSI rates, employer or employee
  • help to buy scheme extended to the end of 2021
  • other taxation and pension changes not announced in the BUdget could be introduced later in the Finance Bill 2020

Download our summary of Budget 2021 here: