Finance Minister Michael Noonan has announced that those earning less than €10,036 will be exempt from the universal social charge from January 1.
He said the measure was aimed at helping the low-paid, part-time and seasonal workers, adding that it would benefit almost 330,000. The current threshold is €4,004.
The Minister confirmed that the top rate of VAT would rise from 21% to 23% from January 1, saying it would not be increased further during the Government's lifetime. He also confirmed that there would be no changes in income tax rates, bands or credits.
The Department of Finance has published tables showing the impact of the changes on some taxpayers.
Mr Noonan defended the VAT rise, saying increases in indirect taxes had a lower impact on growth and jobs. He said the differential between the Republic and Northern Ireland after the rise would be three percentage points, and he did not expect an increase in cross-border shopping.
In other tax measures, capital gains tax rises from 25% to 30% and capital acquisitions tax goes up from 25% to 30%, both after today. DIRT is to rise from 27% to 30%.
But the Minister said he would not be making changes to move to standard relief on pension contributions, even though this is a commitment under the EU/IMF deal. He said this was because changes already made - including the pension fund levy - meant the sector was making a sizeable contribution next year.
But Mr Noonan said the incentive scheme for supplementary pension provision would have to be reformed in the long term to make it more equitable. He said the department and Revenue would work with interested parties over the next year to develop solutions to this issue.
The remaining 50% employer PRSI relief on employee pensions is to be scrapped, while PRSI will be broadened to cover rental, investment and other forms of income from 2013.
The tax rate on the transfer of an approved retirement fund (ARF) on death to a child over 21 will rise from 20% to 30%.
The Minister said he would abolish the "citizenship" condition for payment of the Domicile Levy - aimed at wealthy people who are non-resident for tax purposes - to ensure that tax exiles could not avoid it by renouncing citizenship.
The carbon tax on fossil fuels rises from €15 a tonne to €20. This will apply to petrol and auto-diesel from midnight, but the increase on other fuels such as home heating oil will not take effect until May next year. There will be no increases for peat or coal.
Farmers will be given a double income tax deduction for increased costs arising from carbon tax changes.
The VAT rate on district heating will fall from 21% to 13.5%, while farmers will also be able to claim a refund on wind turbines bought after January 1.
