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
