The entry point for higher rate of tax is to increase by €750. There have also been cuts to two rates of USC.
Meanwhile for PAYE workers threshold for the higher rate of income tax to applied raised by €750 from €33,800 to €34,550.
Mr Donohoe also announced that the 2.5pc USC rate is being reduced to 2pc and the 5pc USC rate is being dropped to 4.75pc.
Mr Donohoe said the ceiling for the new 2pc rate is being raised from €18,772 to €19,372 to ensure that full-time workers won't be hit with a higher rate of USC, which would wipe out any gains.
There will be a €5 increases to social welfare payments including pension, dole and disability allowance from last week of March 2018.
Mr Donohoe also said there would be a €20 increase in the earnings disregard for the One Parent Family Payment and Jobseekers Transitional Scheme.
In addition, the threshold for the Family Income Supplement will rise by €10 a week for families with three children.
Meanwhile, stay at home parents are set to benefit by about €100 per year.
There is no increase to the cost of diesel following Budget 2018. There will also be no hike on carbon tax.
In a significant move stamp duty is to rise to 6pc with effect from midnight tonight. For land used for residential developments the Government is introducing a stamp duty refund scheme subject to certain condition.
“The message to vacant site owners… you need to get on with developing your lands urgently," Minister Donohoe said.