Budget 2027 Highlights

October 7, 2026

Income Tax, employment other credits

• Income tax Standard Rate cut off point up by €2,500 to €46,500

• Entry threshold for the USC 3% band increased by €1,600

• Home carer tax credit will increase by €100

• Employer PRSI up from €552 to €600 per week

• Increase in threshold to all Inheritance Tax groups

• Minimum wage to be increased to €14.94 per hour

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Welfare – Jan 1

• €10 increase in weekly Social Welfare rates

• New cost of disability payment of €500 for those in receipt of long-term disability payments

• Carer's Allowance income disregard will increase to €1,150 for a single person and €2,300 for a couple

• Weekly Fuel Allowance rate will increase by €5, while income threshold for single pensioners will rise from €534 to €641 per week

• Living Alone Allowance will increase by €3 per week

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Housing and rent

• Rent-a-Room scheme tax-free threshold will rise from €14,000 to €16,000

• First-time buyer's Help-To-Buy scheme increased by €5,000 to €35,000, now

• Rent Tax Credit increased by €150 to €1,159 for single people and €2,300 for couples

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Childcare and family

• Childcare fees to be capped at €550 per month

• Weekly rates of Child Support Payment for children under and over-12 by €6, bringing the payments to €64 and €84 per week respectively

• The Working Family Payment weekly income thresholds to increase by €30

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Investment Accounts

• New Savings and Investment Account will have a tax-free threshold of €50,000, with a flat tax of 1% on the value of the account above that threshold

• It will open on 1 July 2027 with a maximum contribution limit of €12,000 per annum and no minimum contribution

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Cigarettes and not alcohol –

Packet of 20 cigarettes rises by €1, e-liquid products by 20 cent, but no hike on alcohol this time

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Carbon Tax and climate

• The income tax exemption for micro-generated electricity has increased from €400 to €600

• Reduced fuel excise extended until 28 February 2027 with a gradual restoration in four phases until 30 June 2027

• *But there will be two Carbon Tax rises next year, in May and October

• Carbon Tax on kerosene and natural gas reduced to €48.50 per tonne of CO2 for lifetime of Government

• Fuel Income Support Scheme extended for five months

• Vehicle Registration Tax (VRT) relief scheme for electric vehicles extended for two years

• VRT rate up 1% on more polluting cars

• Cycle to Work scheme to be "reviewed" to increase uptake, along with TaxSaver scheme for commuters

• €1.3bn to support climate measures including retrofit grants, including boiler scrappage scheme

• €2.3bn allocation for Uisce Éireann to fund new water and wastewater infrastructure

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Education and third level

• Permanent reduction in the student contribution fees of €150, increase in SUSI maintenance grants of 4.5%

• €56m increase in allocation for special education needs to fund 2,339 additional SNAs and 1,353 teachers

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Health and disability

• €1.7bn allocated to health infrastructure projects, including relocation of the National Maternity Hospital

• Free contraception schemes will now be available to people aged up to 37

• 33,000 extra hours of free counselling for men, young people and the LGBTQ+ community

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Transport

• €4.2bn for investment in DART+, BusConnects and Cork commuter rail projects, along with projects like Adare Bypass, Galway Ring Road

• €6bn allocated to MetroLink over the period from 2027 to 2030

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Farming and rural Ireland

• €15 million announced to support rural pubs

• Wear and Tear Allowance for Farm Safety Equipment extended by three years

• Additional €31m allocated for new fertiliser scheme with fuel income support for farmers extended

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Business

• Amendments to the country's corporation tax regime

• Capital Gains Tax standard rate reduced from 33% to 31% for small businesses

• Bank Levy extended for another year with a target yield of €200 million

• Ireland Strategic Investment Fund launching €1 billion investment programme to support growth of Irish companies

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Gardaí and Defence

• Funding for intake of 850 new permanent Defence Force members

• Funding to recruit up to 1,000 trainee gardaí, bringing the force to over 15,000 next year

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Sport

• €4 million in funding to the League of Ireland football academies

• €1m increase in funding to the Gaelic Players Association

• Additional support for high-performance in the build up to the LA Olympics

• Almost €22m will support Ireland's hosting of the 2027 Ryder Cup and preparations for Euro 2028

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