The Minister made a number of changes to the Universal Social Charge as well as an increase in the standard rate income tax bands effective from January 2018. The Minister also increased all weekly social welfare payments, including an increase in the State Pension of €5 per week with effect from the last week in March 2018.
DIRT (Deposit Interest Retention Tax)
Following on from last year’s budget, the rate of DIRT will decrease by 2% to 37% with effect from 1 January 2018. It is planned that the DIRT rate will decrease by 2% each year for the next 3 years until it reaches 33% in 2020.
As expected, there has been an increase to income tax bands. The single person standard rate band will increase from 33,800 to 34,550, and from 42,800 to 43,550 for married “one earner” couples. There was no change to income tax rates. The higher rate of income tax remains at 40% with the standard rate of income tax unchanged at 20%.
Universal Social Charge (USC)
The Government has announced a number of changes to the USC to take effect from 1 January 2018:
• 2.5% USC rate reduced to 2%
• 5% USC rate reduced to 4.75%
• A €600 increase to the ceiling for the 2% USC rate raising it from €18,772 to €19,372
Stamp Duty on non-residential property increases from 2% to 6% from midnight on Tuesday 10 October 2017.