Revenue eBrief No. 005/23

16 January 2023

Changes to standard rate tax band and personal tax credits

As part of Budget 2023 the Minister for Finance announced the introduction of an income tax package which included changes to the value of the standard rate tax band and a number of personal tax credits. These changes apply with effect from 1st January 2023 and include the following measures:

• the value of the standard rate tax band has increased by €3,200 per person,
• the value of the basic personal tax credit, the employee (PAYE) tax credit and the earned income tax credit have all increased to €1,775 per person, and
• the value of the home carer tax credit has increased to €1,700 per person.

The following Tax and Duty Manuals have now been updated to reflect these changes and to update the text for the current tax year:

• TDM Part 15-01-05 Incapacitated Child Tax Credit
• TDM Part 15-01-07 Employee (PAYE) Tax Credit
• TDM Part 15-01-13 Repayments under section 460 Taxes Consolidation Act 1997
• TDM Part 15-01-14 Medical Insurance
• TDM Part 15-01-20 Employed Person taking care of an Incapacitated Individual
• TDM Part 15-01-26 Allowances for Over 65s
• TDM Part 15-01-29 Home Carer's Tax Credit
• TDM Part 15-01-36 Tax Relief on Retirement for Certain Income of Certain Sportspersons
• TDM Part 15-01-41 Single Person Child Carer Credit
• TDM Part 15-01-44 Earned Income Tax Credit
• TDM Part 44-01-01 Income Tax Treatment of Married Couples and Civil Partners