Supplementary Budget 2009 - Income Tax

The rates of the Income Levy have changed with effect from 1 May 2009, as illustrated below:

Applicable from 1 May 2009

The table below outlines the changes for 2009.

Income Levy Thresholds	Rate
Income up to €75,036	2%
Income from €75,037 to €174,980	4%
Income above €174,980	6%

Rates prior to this are shown below:

Applicable from 1 January 2009 to 30 April 2009:

Income Levy Thresholds	Rate
Income up to €100,100	1%
Income from €100,101 to €250,120	2%
Income above €250,120	3%

The under 65 income levy exemption will change from €18,304 to €15,028 from 1 May 2009.

Health Levy

Health Levy Rates

With effect from 1 May 2009 the Health Levy rates will increase from 2% to 4% and from 2.5% to 5%.

Health Levy Threshold

The Health Levy threshold will decrease from €100,100 to €75,036 from 1 May 2009.

Tax Relief at Source – Mortgage Interest Relief

From 1 May 2009, tax relief may not be claimed on the interest paid on a qualifying home loan in the 8th and subsequent tax years of the life of that loan. All qualifying loans taken out in the 2002 tax year or earlier tax years are in this category.

However, mortgage interest tax relief may be claimed on the interest paid on a qualifying home loan in the first 7 tax years of the life of that loan.
The current rates of tax relief for first time buyers and non-first time buyers remain unchanged.

There is no change to the existing annual ceilings on the amount of interest that can be allowed on a mortgage:

	Single €	Married €
First-time buyers	10,000	20,000
Non first-time buyers	3,000	6,000