Budget 2021

                                                                                                             The Main Points


No change in Income Tax Rates and Bands for 2021.  However, Two Tax Credits are increased :  

  • Earned income tax credit for the self-employed and proprietary directors increased by €150 to €1650 for 2021.
  • The Dependant relative tax credit increases by €145 to €245 for 2021.


  • The 2% USC band will be increased in 2021 from €8,472 to €8,675.
  • No change announced in DIRT rate at 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 increases by €5pw to €19.00 pw.
  • 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 Changes in private pension tax reliefs, limits or taxation of benefits.
  • No change in PRSI rates, employer or employee. 
  • Help to Buy Scheme extended to end of 2021. 
  • Other taxation and pension changes not announced in the budget could be introduced later in the Finance Bill 2020.

                                                                                              USC RATES & BANDS 

                                2020                                                                                                 2021


First €12,012           0.5%                                                         First €12,012                        0.5%


First €8,472             2.0%                                                         Next €8,675                          2.0%


Next €50,170          4.5%                                                          Next €50,170                        4.5%


Balance                    8%                                                            Balance                                 8.0%

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