Budget 2019 main points:

Income Tax, USC & Tax Credits

  • The Universal Social Charge of 4.75% (levied on incomes between €19,300 and €70,000) will be reduced by 0.25% to 4.50%.
  • The threshold at which people pay the higher rate income tax of 40% will increase by €750 from €34,550 to €35,300.
  • The threshold at which people hit the lower 2 per cent rate of USC, levied on incomes between €12,000 and €19,000, will be widened by €500 to take account of a 25 cent increase in the minimum wage.
  • PRSI for the self employed to be expanded, including job seeker’s allowance.
  • Earned income tax credit for the self employed will increase by €200.
  • Minimum wage will be increased to €9.80 next year.
  • New scheme will give parents two week’s paid parental leave (increasing to seven weeks in future years).
  • Tax free threshold for Inheritance increased by €10,000 to €320,000 for Class A (children).

Old Reliables

  • Excise on cigarettes to increase by 50 cents & pro-rata increase on other tobacco products.
  • No increase in excise on diesel or carbon tax.
  • No increase in alcohol excise.

Other Tax

  • 9 per cent VAT rate for the hospitality sector will increase to 13.5 per cent for all areas of the sector, apart from newspapers and sporting facilities.
  • Betting tax to increase from 1 per cent to 2 per cent.


  • Home carer tax credit will increase by €300
  • Up to 100,000 people may qualify for free GP care
  • 50 cent reduction in prescription charges for over 70’s
  • €10 reduction in monthly drugs payment scheme


  • Capital spending on housing will increase by €482 million
  • Introduction of 100% mortgage interest relief for landlords
  • Affordable housing scheme with subsidies of up to €50,000 per house, aiming to deliver 6,000 homes over 3 years.

Social Welfare

  • All social welfare payments will increase by €5 in March 2019.
  • The Christmas Bonus has been restored to 100%.


  • Increase in Employers PRSI by 0.1% in 2019 and 2020.
  • No change in 12.5% corporation tax.
  • Share options increased to SME employers to attract skilled workers.
  • Review of Crowd Funding in Ireland as a form of fund raising for SMEs.

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