There is no change to tax rates for 2022, the standard rate will remain at 20% and the higher rate at 40%.
USC Rates & Bands 2022
€0 – €12,012 @ 0.5%
€12,013 – €21,295 @ 2%
€21,296 – €70,044 @ 4.5%
€70,045 + @ 8%
Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will continue to pay a maximum rate of 2%.
The emergency rate of USC remains at 8%.
Non-PAYE income in excess of €100,000 will continue to be subject to USC at 11%.
The Employment Wage Subsidy Scheme (EWSS) will continue until the end of April 2022 in a graduated form.
Level of subsidy the employer will receive is per paid employee
|Employee Gross Weekly Wages||Subsidy Payable|
|Less than €151.50||Nil|
|From €151.50 to €202.99||€151.50|
|From €203 to €1,462||€203|
|More than €1462||Nil|
The National Minimum Wage will increase by 30 cent from €10.20 to €10.50 per hour from January 1st 2022.
The weekly threshold for the higher rate of employer PRSI will increase to €410 from €398, this is in line with the increase in the National Minimum Wage.
Parent’s leave has been increased by two weeks, this brings it up to seven weeks from July 2022.
The reduced rate of 9% VAT for the tourism and hospitality sector will continue to apply until the end of August 2022.
There will be a €5 increase in all weekly Social Welfare payments with effect from January 2022. The maximum personal rate of Illness Benefit will be increased to €208 per week. Maternity Benefit, Parent’s Benefit and Paternity Benefit will be increased to €250 per week.
Where an employer does not pay the e-working allowance (€3.20 per day) to an e-worker, employees will be able to claim tax relief on 30% of the cost of vouched expenses for heat, light and broadband in respect of the days worked from home.
The BIK exemption for battery electric vehicles will be extended out to 2025 with a tapering effect on the vehicle value. This measure will take effect from 2023. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023, €24,000 for 2024 and €10,000 for 2025.