The higher rate of tax will now apply to anyone earning above €40,000.
The rate had been set at €36,800 for a single person.
Gerard Brady, Head of National Policy and Chief Economist at IBEC, explains how it'll affect the average worker:
"Where it's going to be significant is probably in two places, one is that it will help keep those rates and bounds ahead of inflation so you're not seeing a tax increase. The second thing is that it will help in the labour market where there's huge amounts of pressure, because of those inflationary pressures in the economy will help to take some pressure off."
