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Budget 2027 Ireland: what it means for you

Simon Harris delivered Budget 2027 on Tuesday 6 October 2026. Every change to income tax, inheritance tax, savings and welfare, with the old figure beside it.

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Person reviewing household finances at a desk ahead of the Budget

Budget 2027 income tax: the headline figures

Where the 40% rate starts
€46,500Where the 40% rate startsUp €2,500, from €44,000
Income tax package
€1.3bnIncome tax packageBands, credits and USC together
Less a year on €50,000
Over €700Less a year on €50,000Income tax and USC, the Minister's figure
A couple earning €50,000 each
About €1,500A couple earning €50,000 eachIncome tax and USC, the Minister's figure

Budget 2027

Budget 2027 tax changes, measure by measure

Every figure the Budget moved, with the one it replaces beside it. A dash means the Budget gave the change rather than the previous figure.

Income tax, USC and tax credits

Where the 40% rate starts
Before
€44,000
After Budget 2027
€46,500
Personal, PAYE and earned income credits
After Budget 2027
Each up €125
Home carer credit
After Budget 2027
Up €100
USC band ceiling
Before
€28,700
After Budget 2027
€30,300

Savings, investments and pensions

Capital gains tax
Before
33%
After Budget 2027
31%, from 7 October 2026
Exit tax on funds and ETFs
Before
38%
After Budget 2027
35%
Standard Fund Threshold
After Budget 2027
Defined benefit valuation factors revised from 1 January 2027

Inheritance and gift tax (CAT) thresholds, from 7 October 2026

Children
Before
€400,000
After Budget 2027
€420,000
Siblings, nieces, nephews, grandchildren
Before
€40,000
After Budget 2027
€44,000
Everyone else
Before
€20,000
After Budget 2027
€22,000

Housing, rent and childcare

Help to Buy, maximum
Before
€30,000
After Budget 2027
€35,000, from 7 October 2026
Help to Buy, property value cap
Before
€500,000
After Budget 2027
Unchanged
Rent tax credit
Before
€1,000
After Budget 2027
€1,150 (€2,300 a couple) for 2027 and 2028
Rent-a-room relief limit
Before
€14,000
After Budget 2027
€16,000
Childminders' tax exemption
Before
€15,000
After Budget 2027
€20,000

Social welfare payments

Weekly rates
After Budget 2027
Up €10
Cost-of-disability payment
After Budget 2027
€500
Carer's income disregard
After Budget 2027
€1,150 a week single, €2,300 a couple, from July 2027
Fuel allowance
Before
€38 a week
After Budget 2027
€43 a week
Fuel allowance means limit, single pensioners
Before
€534
After Budget 2027
€641
Living alone allowance
Before
€22 a week
After Budget 2027
€25 a week

Excise, fuel and motoring

20 cigarettes
After Budget 2027
Up €1
Vape e-liquid
After Budget 2027
Up 20c per millilitre
Reduced excise on fuel
After Budget 2027
Held to 28 February 2027, restored in four phases by 30 June 2027
VRT relief for electric vehicles
After Budget 2027
Runs to 31 December 2028
VRT on higher-emission cars
After Budget 2027
Up one percentage point

Source: Department of Finance, Budget 2027 Tax Policy Changes, as at October 2026

The Investment Account

The most you can pay in a year
€12,000The most you can pay in a year
No tax on the fund up to this value
€50,000No tax on the fund up to this value
Tax on the value above €50,000
1% a yearTax on the value above €50,000Due whether the fund gained or lost
Accounts open
1 July 2027Accounts open

Savings, investments and pensions

What it means for savers and investors

Three measures with a long tail. The account itself, and how it compares with a pension, has its own page.

Inside the Investment Account

No capital gains tax, no exit tax and no eight-year deemed disposal. Your provider works out the 1% tax and pays it, so you file nothing with Revenue.

Exit tax on funds outside the account

Exit tax falls from 38% to 35%, when you sell and on a deemed disposal alike. The eight-year rule itself was not abolished.

Your pension

The Investment Account carries no contribution relief, so it does not displace pension capacity you have not used. My Future Fund is a separate scheme.

The Investment Account in detailMy Future Fund and your pay

Now the figures are out

What to do after Budget 2027

Nothing here needs doing on the day. Knowing your own position is what turns a Budget figure into a decision.

  1. Know what you hold

    Deposits, investments and unused pension capacity. Those three answers decide what a €12,000-a-year account is worth to you.

    How investing is taxed now

  2. Avoid moves that are hard to undo

    Accounts do not open until 1 July 2027, and the €12,000 limit means a lump sum cannot go in at once.

    Common questions

  3. We read the Budget against your numbers

    What the measures are worth depends on your income, your bands and what you hold. If nothing changes your plan, we will say so.

    Book a consultation
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Budget 2027 — common questions

Updated after the Budget speech. Last reviewed 6 October 2026.

Still have questions?

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Read the Budget against your own numbers

A 45-minute first conversation, by video call anywhere in Ireland or in person by arrangement. A diagnostic look at where you stand, not advice on the day.
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