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Budget 2027
6th October 2026
Last Updated: 6th October 2026
Please note that implementation dates for announced changes have been indicated below where available. Not all changes take immediate effect.
We will endeavour to update this with any major changes or announcements as we digest the budget this year.
Personal Taxation
- Minimum wage to increase by 79 cent to €14.94 per hour from 1st January 2027.
- Rate bands increased by €2,500 for a single person. See table below for further details.
- Personal, PAYE (Employee) and Earned Income tax credits each increased by €125 to €2,125. See table below for further details.
- Home Carer tax credit increased by €100 to €2,050.
- USC 2% band ceiling increased by €1,600 to €30,300.
- Rent tax credit increased by €150 to €1,150 for a single person (€300 increase to €2,300 for a jointly assessed couple).
- Rent-a-room relief limit increased from €14,000 to €16,000, and extended to auxiliary homes built from 27 July 2026.
- Childminding relief: tax-free earnings limit increased from €15,000 to €20,000, and the 3-child limit removed.
Cost of Living Update & Supports
- Maximum relief under the Help to Buy Scheme increased by €5,000 to €35,000, with immediate effect. The €500,000 property value cap is unchanged.
- Carbon Tax – Marked Gas Oil (MGO): The carbon tax increase originally scheduled for 1 May 2026 is deferred to 1 May 2027, and the increase scheduled for 1 May 2027 is deferred to 13 October 2027.
- Fuel Excise: Existing reductions on diesel (32 cent/litre) and petrol (27 cent/litre) extended to 28 February 2027, with the restoration then phased in to 30 June 2027.
- Carbon Tax – Home Heating Oil (Kerosene) & Natural Gas: Reduced from €63.50 to €48.50 per tonne of CO2. The saving on home heating oil is approximately €25–€30 per 1,000 litres.
Business Taxation & Regulation
- Start-up corporation tax relief extended to 31 December 2030.
- Employer PRSI: The weekly threshold for the lower rate of employer PRSI increases from €552 to €600 in 2027.
- Bank levy extended for a further year.
Reminder: the employer PRSI rate increased on 1 October 2026 to 11.40% (higher rate) and 9.15% (lower rate)
Relevant Contracts Tax and Construction Industry
- No changes noted
Indirect Taxes
- Farmers flat rate addition increased from 4.5% to 4.8% for 2027.
- Succession Farm Partnership tax credit increased from €5,000 to €10,000 from 1st January 2027.
Stamp duty
- No change to stamp duty for first-time buyers. Instead, the maximum Help to Buy relief increases by €5,000 to €35,000 (see above).
Capital Taxes
- Capital Gains Tax standard rate reduced from 33% to 31% from 7 October 2026
- Capital Acquisitions Tax Category A Threshold increased from €400,000 to €420,000 from 7 October 2026
- Capital Acquisitions Tax Category B Threshold increased from €40,000 to €44,000 from 7 October 2026
- Capital Acquisitions Tax Category C Threshold increased from €20,000 to €22,000 from 7 October 2026
- Exit tax on investment funds and life assurance policies reduced by 3 percentage points to 35%.
(Local) Property Tax (LPT)
- No changes noted.
Miscellaneous Provisions & Announcements
- Tobacco – excise duty increase of €1 on a pack of 20 cigarettes.
- E-liquid products tax – increased by 20 cent per millilitre (to 70 cent per millilitre, VAT exclusive).
- Micro-generation of electricity (domestic): income exemption increased from €400 to €600.
- Enhanced Reporting Requirements (ERR) – in 2027 there will be the option to report by the 14th of the month following the income tax month in which the reportable benefit is provided to the employee.
- Social welfare: weekly rates increase by €10 from January 2027. The Fuel Allowance increases by €5 to €43 per week, the Living Alone Increase by €3 to €25 per week, and the Child Support Payment by €6 per week.
- New investment account available from July 2027, with an annual contribution limit of €12,000.
Summary Statistics:
| Budget 2027 | Budget 2026 | ||
| Capital Gains Tax Rate (non-development land) | 31% | 33% | |
| Capital Acquisitions Tax Rate | 33% | 33% | |
| Income Tax Rates | |||
| Lower | 20% | 20% | |
| Higher | 40% | 40% | |
| DIRT Tax | |||
| 39% (39% – where payments made less frequently than annually) | 39% (39% – where payments made less frequently than annually) | ||
| Tax Credits | |||
| Single Person | €2,125 | €2,000 | |
| Married Couple | €4,250 | €4,000 | |
| PAYE Credit | €2,125 | €2,000 | |
| Home Carer Credit | €2,050 | €1,950 | |
| Earned Income Tax Credit | €2,125 | €2,000 | |
| Rate Bands | |||
| Single/widowed | €46,500 | €44,000 | |
| Single/widowed with dependent children | €50,500 | €48,000 | |
| Married -one income earner | €55,500 | €53,000 | |
| Married – two income earners | €93,000 | €88,000 | |
| PRSI | |||
| Contribution Ceiling | No limit | No limit | |
| Universal Social Charge | |||
| Year 2026/2027 | < €13,000 | Exempt | Exempt |
| Year 2026/2027 | € 0 – €12,012 | 0.5% | 0.5% |
| Year 2026 | €12,013 – €28,700 | 2% | |
| Year 2027 | €12,013 – €30,300 | 2% | |
| Year 2026 | €28,701 – €70,044 | 3% | |
| Year 2027 | €30,301 – €70,444 | 3% | |
| Year 2026/2027 | €70,045 – €100,000 | 8% | 8% |
| Year 2026/2027 | Self employed income > €100,000 | 11% | 11% |
| Year 2026/2027 | PAYE income in excess of €100,000 | 8% | 8% |
| Year 2026/2027 | Age >70/medical card holders with income < €60,000 – Max rate | 2.0% | 2.0% |
Whilst every care has been taken in the production of this budget summary, neither Royal Canal Financial Control Services nor Ronan Duffy and Co. can be held responsible for any action taken or deferred, resulting from any errors contained therein. For a more comprehensive summary please refer to the government press release.