Increased tax rate threshold and tax credits for renters among Budget 2023 provisions 

Minister for Public Expenditure and Reform Michael McGrath, and Minister for Finance Paschal Donohoe, at Government Buildings to iron out budget details. Picture: Damien Storan

The Government will sign off on a large increase to the point at which people pay the top rate of tax to bring it close to €40,000, in the soon-to-be announced budget for 2023.

At present, the higher 40% tax rate kicks in on income over €36,800 for a single person. Finance Minister Paschal Donohoe is set to raise this point by €3,200, with a similar increase for married couples or those in a civil partnership on one income.