Budget 2027: What It Means for You and Your Business

Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers delivered Budget 2027 on 7 October 2026, billed by the Government as a “Making Work Pay” budget. It brings changes to income tax bands and credits, USC, childcare costs, housing supports and a brand new tax-efficient investment account.

Our team has put together a straightforward guide to the measures most likely to affect you, your family and your business. Below is a summary of the key points. The full guide, including the complete tax credit, rate band, USC and PRSI tables, is available to download.

Personal tax

The main income tax changes widen the standard rate bands, so more of your income is taxed at 20% before the 40% rate applies, and increase the core personal tax credits.

• Standard rate bands for 2027: €46,500 for single people, €50,500 for single parents, €55,500 for one-income married couples and €93,000 for two-income married couples (transferable up to €35,000 for either spouse).
• Personal, PAYE and Earned Income credits each rise by €125 to €2,125 (€4,250 for a married couple).
• Single Person Child Carer credit rises to €2,025 and the Home Carer credit rises by €100 to €2,050.
• Rent tax credit increases by €150 to €1,150 for single renters and €2,300 for couples.
• Inheritance and gift tax thresholds increase: Category A (parent to child) to €420,000, Category B (siblings, nieces, nephews and grandchildren) to €44,000, and Category C (all others) to €22,000.

Housing and property

• Help to Buy increases by €5,000, to a maximum of €35,000 for first-time buyers.
• The tax-free limit under Rent-a-Room relief rises to €16,000 and is extended to newly installed detached auxiliary dwellings.
• €9.4 billion is allocated to housing overall, including €3 billion for social housing delivery (11,250 new-build social homes) and €225 million for the Housing Infrastructure Investment Fund.

Business and employer measures

• Minimum wage rises by 79 cent to €14.94 per hour.
• The employer PRSI weekly threshold rises from €552 to €600 from 2027.
• The restoration of excise on petrol and diesel, due on 1 November, is postponed to 28 February and will then be phased in over four stages, with full restoration by 30 June 2027.
• VRT relief for electric vehicles is extended for two years to 31 December 2028, while VRT rises by 1% on more polluting cars in bands 3 to 20.
• Farming: the tax credit for Succession Farm Partnerships doubles from €5,000 to €10,000 and the three-year holding period for applications is removed. VAT on respiratory vaccines for livestock falls from 23% to 9%.
• The bank levy is extended for a further year, and €15 million is allocated to support rural pubs.

Investments and savings

New State Investment Scheme

• A new account offering tax-efficient investment in stocks and shares, with contributions of up to €12,000 per year.
• No tax on funds up to €50,000; funds above €50,000 taxed at 1% per annum.
• Accounts are expected to be available from July 2027.

Capital gains tax and exit tax

• Capital gains tax is cut by 2 percentage points to 31%.
• Exit tax (including deemed disposal) on existing investment products falls by 3 percentage points to 35%.

Childcare

• The weekly fee cap for full-time childcare is reduced to €55, targeting savings of around €1,000 a year per child in full-time care.
• The tax-free income limit for childminders caring for children in their own home rises from €15,000 to €20,000.
• The income threshold for accessing free and subsidised childcare is increased.

Universal Social Charge (USC)

USC rates are unchanged, but the ceiling of the 2% band rises from €28,700 to €30,300, so more income is charged at 2% instead of 3%. The €13,000 exemption threshold stays the same.

*Self-employed income over €100,000 is charged at 11%. USC does not apply where total income is below €13,000.

PRSI

• Employee and self-employed PRSI rises from 4% to 4.1% on all income (not applicable where earnings are below €18,300 a year, or €352 a week).
• Employer Class A PRSI remains at 11.25% in total (10.25% PRSI plus the 1% training levy), with the lower-rate weekly threshold rising to €600.

Also in the guide

Download the Budget 2027 Guide →

This summary is a general guide based on the Budget 2027 announcements and should not be used as a substitute for professional financial advice. Decisions should be based on advice that takes your individual circumstances into account. Some measures are subject to the Finance Bill and may change before they become law.