Budget 2021 – The Main Points

There were no major surprises in yesterday’s 2021 budget.

Here we highlight the main points of interest.


  • No change income tax rates and bands for 2021. However, two tax credits are increased:
    • Earned income tax credit for the self-employed and proprietary directors increased by €150 to €1,650 for 2021.
    • The Dependent relative tax credit increased by €145 to €245 for 2021.
  • The 2% USC band will be increased in 2021 from €8,472 to €8,675.
  • No change announced in the DIRT rate of 33%, exit tax rate of 41% or in the 1% life assurance premium levy.
  • No State Pension increases for 2021 but:
    • The Living Alone allowance increases by €5pw to €19pw
    • The Christmas Bonus of 100% of the weekly rate of State Pension will be paid in early December 2020.
  • The State Pension Age will remain at 66 for those reaching 66 in 2021.
  • No change to CAT rates or Threshold amounts.
  • No change in CGT rates.
  • No change in private pension tax reliefs, limits or taxation of benefits.
  • No change in PRSI rates, employer or employee.
  • Help to Buy Scheme extended to end of 2021.
  • Other taxation and pension changes not announced in the Budget could be introduced later in the Finance Bill 2020.

For more in-depth up date from LIA Budget Update report by Tony Gilhawley click LIA_Budget_2021_Update

Should you wish to discuss any of the points in detail, please do not hesitate to contact a member of the team today on 01 4972544.