Ireland Budget 2027: What It Means for Workers, Renters, Families and Pensioners.
Budget 2027 was announced on 6 October 2026. The €8.65 billion package includes changes to income tax, welfare, housing, childcare, fuel and pensions. Here’s what the measures mean for people in Ireland.
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In Text Summary
Announced: 6 October 2026
Package: about €8.65bn — €7bn spending + €1.65bn tax measures. )
If you work / pay income tax
- 40% income-tax band: €44,000 → €46,500
- Personal, Employee & Earned Income tax credits: +€125 each, to €2,125
- Home Carer Tax Credit: +€100
- USC 3% band threshold: €28,700 → €30,300
- Government estimates someone earning €50k gets roughly €700 less tax.
- Minimum wage: +€0.79 → €14.94/hour.
Rent & buying a home
- Rent Tax Credit: up to €1,150 single / €2,300 couple
- Help to Buy: maximum refund €35,000 (+€5k)
- Rent-a-Room exemption: €14,000 → €16,000
- New 7% derelict property tax from January.
Families & childcare
- Childcare fees capped at €550/month
- Child Support Payment: +€6/week
- Working Family Payment income thresholds: +€30/week
- Home-based childminder tax-relief threshold: €15k → €20k.
Welfare
- Most weekly welfare rates: +€10/week
- Fuel Allowance: +€5/week
- Living Alone Allowance: +€3/week
- New €500 Cost of Disability Payment
- Fuel Allowance income threshold for single pensioners: €534 → €641/week.
Energy & cars
- Reduced fuel excise rates extended to 28 Feb 2027, then gradually restored through June.
- Carbon tax on home heating oil/gas reduced to €48.50/tonne CO₂.
- EV VRT relief extended to 31 Dec 2028.
- VRT rises 1% for more-polluting cars.
Savings & investments
New Savings & Investment Account:
- First €50,000 tax-free
- 1% tax above €50k
- Maximum contribution: €12,000/year
- Opens 1 July 2027.
Capital gains / inheritance
- Standard CGT: 33% → 31%, effective for disposals from 7 Oct 2026.
- Inheritance thresholds increased:
- Group A: €400k → €420k
- Group B: €40k → €44k
- Group C: €20k → €22k.
Other
- 20-pack cigarettes: +€1
- E-liquid: +20c/ml
- No alcohol duty increase this time.
Education / health
- Student contribution permanently reduced by €150
- SUSI maintenance grants: +4.5%
- 2,339 additional SNAs + 1,353 teachers for special education
- Free contraception extended to people up to age 37
- 1.8m additional home-support hours.
