In line with the increases in the main personal tax credits last year, Budget 2025 proposes a further €125 increase in the personal tax credit, the employee tax credit and the earned income credit, from €1,875 to €2,000. This represents an increase of 6.6% but the automatic index-linking of these credits to inflation or wage increases continues to be conspicuous by its absence.
The minister also provided for increases in the home carer tax credit and the single person child carer tax credit by €150 each and increases in the incapacitated child tax credit and blind person’s tax credit by €300 each. There has also been an increase of €60 in the dependent relative tax credit.
The minister also announced the extension of the sea-going naval personnel tax credit for a further five years until 2029. This tax credit is currently €1,500 per annum for permanent members of the Irish Naval Service who have spent at least 80 days at sea in the previous year in the course of their employment.
