Budget 2023: Government to increase entry point for top tax rate to €40,000

It is understood that Public Expenditure Minister Michael McGrath has finalised his spending package for Tuesday’s budget which is to be approved by the three leaders in Government this evening

Finance Minister Paschal Donohoe. Picture: Leah Farrell / RollingNews.ie

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 Tuesday’s Budget.

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 raising this point by €3,200 with a similar increase for married couples or those in a civil partnership on one income.