Budget 2023 Summary of Tax Measures

Budget 2023 Summary of Tax Measures

The Minister for Finance, Paschal Donohoe T.D., and Minister for Public Expenditure and Reform, Michael McGrath T.D., yesterday presented an overall Budget package of €11 billion to address the rising cost of living facing both individuals and enterprises. A high-level summary of the budget measures is attached below, there are detailed provisions behind each measure. Please contact Helena Burke at This email address is being protected from spambots. You need JavaScript enabled to view it. or your usual GKS contact if you would like to discuss the impact of any of these measures.

Personal Tax

  • €3,200 increase to the standard rate income tax band. The entry point to the 40% income tax rate will be €40,000 for individuals and €49,000 for married couples with one income.
  • Ceiling of the 2% USC rate will be increased from €21,295 to €22,920.
  • USC rate of 2% USC for full medical card holders and over 70 to be extended for one year.
  • Personal Tax Credit, Employee Tax Credit and Earned Income Tax Credit to be increased to €1,775 for the tax year 2023 onwards.
  • Home Carer Tax Credit will also be increased by €100 to €1,700 from 2023 onwards.
  • A new tax credit of up to €500 is being introduced for renters in the private rented sector, who are not in receipt of other State housing supports.

Business Measures

  • Employee voucher limit to double to €1,000 effective from Budget night.
  • Foreign Earnings Deduction (FED) has been extended for a further three years.
  • Special Assignee Relief Programme (SARP) has been extended for a further three years.
  • Amendments to Key Employment Engagement Programme (KEEP).
  • A Temporary Business Energy Support Scheme (TBESS) is being introduced to assist businesses with energy costs over the winter months.
  • The Government approved a Ukraine Enterprise Crisis Scheme worth €200 million for firms operating in the manufacturing and/or internationally traded services sectors.
  • Changes to the operation of the R&D Tax Credit system.
  • The Knowledge Development Box (KDB) extended for 4 years.
  • Film relief has been extended 4 to 31 December 2028.


  • A new Vacant Homes Tax (VHT) which will be introduced in 2023. The tax will apply to residential properties which are occupied for less than 30 days in a 12-month period.
  • The Help to Buy Scheme, extended for two years until the end of 2024 at the current rates.
  • The pre letting expenses cap for Landlords is being increased.
  • The Residential Development Stamp Duty Refund Scheme (SDRS) has been extended.
  • The Living City Initiative (LCI) has been extended for a further five years.


  • The Young Trained Farmer and Farm Consolidation Stamp Duty Reliefs extended to 2025.
  • The Farm Restructuring CGT Relief will be extended to 31 December 2025.
  • The Young Trained Farmer and Registered Farm Partnerships Stock Reliefs will be extended to 31 December 2024.


  • 9% VAT rate for tourism and hospitality sectors will continue until 28 February 2023.
  • 9% VAT rate for gas and electricity supplies will be extended to 28 February 2023.
  • The zero rate of VAT will apply to the following supplies from 1 January 2023:
    • Newspapers and news periodicals including digital editions.
    • Automatic External Defibrillators and period products.
    • Non-oral Hormone Replacement Therapy.
    • Non-oral Nicotine Replacement Therapy

Excise Duty

  • The temporary excise rate reductions which currently apply to Marked Gas Oil (MGO), diesel and petrol respectively, have been extended until 28 February 2023.
  • An increase of 50 cent on a pack of 20 cigarettes.


  • No changes were announced in relation to the CGT rate, CAT rate or CAT thresholds.
  • Increased Revenue compliance interventions (enquiries and audits) is to be expected.



A summary of the key cost of living measures can be found in the article; Budget 2023 Cost of Living Measures.


For the full transcript of the budget please refer to

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