Thousands of workers will receive more money in their wages after the government announced an increase to the income threshold for the higher rate of income tax in Budget 2023.
Currently, workers pay 20% on any income they earn up to €36,800 and will pay 40% on the remainder above that sum. Finance Minister Paschal Donohoe has announced that workers will now pay the lower rate of 20% on earnings up to €40,000 before entering the higher rate.
That means that an extra €3,200 of people's gross earnings will be subject to the lower rate, but what does that mean for your pocket?
