Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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216. To ask the Minister for Finance if increases in the tax bands introduced in Budget 2023 are also available to retired persons over the age of 65 years when availing of their pension funds. [9630/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Following clarification from the Deputy’s office, I understand that the purpose behind the question is to clarify if the income tax changes introduced in Budget 2023 apply to persons aged 65 or over and in receipt of occupational pensions.

As the Deputy will be aware, Budget 2023 included a significant income tax package amounting to a cost of €1.13 billion in 2023 and consisted of both personal income tax and Universal Social Charge (USC) changes. In relation to the income tax changes, the Standard Rate Cut-Off Point for single persons was increased by €3,200, or 8.7 per cent, from €36,800 to €40,000, with commensurate increases for persons who are married/in civil partnerships. In addition, the main tax credits – the personal tax credit, employee tax credit and earned income credit - were all increased by just over 4.4 per cent, or €75 each, from €1,700 to €1,775. The home carer tax credit was also increased by €100, from €1,600 to €1,700, which equates to a 6.3 per cent increase. These tax changes will provide a real benefit to all individuals who pay income tax by reducing their overall income tax liability.

Turning to the USC, the ceiling of the band for the 2 per cent rate was also increased by €1,625, from €21,295 to €22,920. It is also worth pointing out that the USC concession for medical card holders who earn less than €60,000 per annum was extended for a further year, which means such individuals will continue to pay a reduced rate of USC in 2023. Further details can be located at the following link: www.gov.ie/en/publication/ccc22-budget-2023-taxation-measures/.

To answer the Deputy’s specific question, these tax measures will generally apply to all taxpayers, including PAYE income earners, persons in receipt of occupational pensions and self-employed income earners, as appropriate to their individual circumstances and income levels.