Budget 2027 explainedIreland
Budget 2027 is worth €766 to every worker on €46,500 or more. Below that, it's a staircase.
Ireland's €8.65 billion Budget, announced on by Simon Harris and Jack Chambers, widens the tax band, adds €10 a week to welfare and caps childcare fees. Here's what changes for you, when, and the documents behind it.
Find your step on the staircase
you keep €766 more in 2027: €14.73 a week.
- From €46,500 up, the gain stops growing: the wider 20% band is worth €500 at most.
- Below about €20,000, too little tax is paid for the €250 in new credits to count.
- Wider 20% band
- €500
- Higher tax credits
- €250
- Rent Tax Credit
- €0
- USC band change
- €16
Estimate for a single PAYE employee comparing 2026 rates with the Budget 2027 changes. Employee PRSI is excluded because the Budget did not change it. Not tax advice.
Budget 2027 in four numbers
- €8.65bn
- The whole package: €7 billion in extra spending and €1.65 billion in tax cuts, €1.3 billion of it on personal income tax.
- +€10
- A week on most social welfare payments and State Pensions from January.
- €14.94
- The hourly minimum wage from 1 January 2027, up 79 cent.
- €125.6bn
- Total government spending planned for 2027, set out in the Expenditure Report.
The poorest tenth gains more than four times as much as the richest
Change in weekly disposable income from all Budget 2027 tax, welfare, minimum wage and PRSI measures, by household income tenth. The average household gains 1.8%.
- 3.9%Poorest
- 2.9%2
- 2.4%3
- 2.3%4
- 2.1%5
- 1.9%6
- 1.6%7
- 1.6%8
- 1.4%9
- 0.9%Richest
Households ranked from poorest tenth to richest tenth
| Lone parents | +2.8% | |
|---|---|---|
| Single, retirement age | +2.6% | |
| Single, working age, no children | +2.1% | |
| Retired couples | +2.0% | |
| Working-age couples, no children | +1.4% | |
| Working-age couples with children | +1.4% |
Social welfare increases drive the gains at the bottom. Lone parents and single pensioners do best by household type; working-age couples gain least, mostly through the minimum wage and tax changes. The Department's analysis uses the ESRI's SWITCH tax-benefit model.
Source: Expenditure Report 2027, figures 5 and 6. Read the full Expenditure Report (PDF)
Where the €125.6 billion goes
Total 2027 allocation for each Government department: €105.3 billion of day-to-day spending and €20.3 billion of capital investment. Spending rises €7.1 billion, or 6%, on 2026.
| Department | Day-to-day Capital | Total | Day-to-day | Capital | Day-to-day vs 2026 |
|---|---|---|---|---|---|
| Social Protection | €31.0bn | €30.9bn | €26m | +7.0% | |
| Health | €29.1bn | €27.4bn | €1.7bn | +6.2% | |
| Education and Youth | €14.4bn | €12.8bn | €1.6bn | +3.2% | |
| Housing, Local Government and Heritage | €11.9bn | €4.5bn | €7.4bn | +10.5% | |
| Children, Disability and Equality | €7.6bn | €7.4bn | €0.2bn | +7.1% | |
| Justice, Home Affairs and Migration | €5.9bn | €5.5bn | €0.4bn | −8.2%* | |
| Transport | €5.6bn | €1.4bn | €4.2bn | −4.5% | |
| Further and Higher Education, Research | €5.3bn | €4.4bn | €0.9bn | +5.1% |
Show the other 11 departments and the reserve
| Department | Day-to-day Capital | Total | Day-to-day | Capital | Day-to-day vs 2026 |
|---|---|---|---|---|---|
| Agriculture, Food and the Marine | €2.3bn | €2.0bn | €0.3bn | −3.0% | |
| Public Expenditure and Digitalisation | €2.1bn | €1.8bn | €0.4bn | +0.8% | |
| Reserve, to be allocated | €1.8bn | €1.6bn | €0.2bn | — | |
| Defence | €1.6bn | €1.3bn | €0.3bn | +6.3% | |
| Enterprise, Tourism and Employment | €1.3bn | €0.6bn | €0.7bn | +1.5% | |
| Culture, Communications and Sport | €1.3bn | €0.8bn | €0.5bn | +2.7% | |
| Climate, Energy and the Environment | €1.3bn | €0.2bn | €1.0bn | −0.6% | |
| Foreign Affairs and Trade | €1.3bn | €1.2bn | €26m | −6.5% | |
| Finance | €0.8bn | €0.7bn | €26m | +1.5% | |
| Rural and Community Development, Gaeltacht | €0.6bn | €0.4bn | €0.3bn | +4.4% | |
| Taoiseach | €0.4bn | €0.4bn | €26m | +13.5% |
*Justice falls because temporary 2026 funding for international protection accommodation is stripped out before the 2027 allocation; €1.6 billion for Ukraine and IPAS costs is provided separately. Transport and Climate day-to-day budgets dip, but their capital budgets rise 21% and 26%.
Source: Expenditure Report 2027, tables 1 to 3. Read the full Expenditure Report (PDF)
What the money buys
Commitments the Government attaches to the 2027 allocations.
- 11,250
- new-build social homes in 2027
- 15,000
- new starter homes through affordability schemes
- 8,000+
- new HAP and RAS rental tenancies
- 1.8m
- extra home support hours for older people
- 2,339
- more special needs assistants, taking the total to 28,000
- 1,353
- more teachers for special classes and schools
- 293,000
- children on the National Childcare Scheme, up 16,000
- 240,000
- people get the new €500 cost of disability payment
- 465,000
- households get the €5 Fuel Allowance increase
- 489
- new or enhanced disability residential places
- 14,700
- extra respite sessions for disabled people and carers
- 7,000
- additional public service staff
Source: Expenditure Report 2027, chapter 1 and department chapters. Read the full Expenditure Report (PDF)
48 changes, before and after
Every measure in Budget 2027, with the 2026 figure, the new figure and the size of the change.
▲ Goes up▼ Goes downNew scheme
Income tax, USC and pay
10 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| Standard rate (20%) band, single person | €44,000 | €46,500 | ▲ 5.7% | 1 Jan 2027 |
| Personal, Employee and Earned Income credits, each | €2,000 | €2,125 | ▲ 6.3% | 1 Jan 2027 |
| Home Carer Tax Credit | €1,950 | €2,050 | ▲ 5.1% | 1 Jan 2027 |
| USC 2% band upper limit | €28,700 | €30,300 | ▲ 5.6% | 1 Jan 2027 |
| Income tax rates | 20% / 40% | 20% / 40% | No change | — |
| National minimum wage, per hour | €14.15 | €14.94 | ▲ 5.6% | 1 Jan 2027 |
| Employer PRSI higher-rate threshold, weekly | €552 | €600 | ▲ 8.7% | 2027 |
| Capital Gains Tax rate | 33% | 31% | ▼ 2 pts | 7 Oct 2026 |
| Capital Acquisitions Tax thresholds, Group A / B / C | €400k / €40k / €20k | €420k / €44k / €22k | ▲ 5–10% | 7 Oct 2026 |
| Investment account: €12,000 a year limit, €50,000 tax-free threshold, 1% above it | — | Launches | New | 1 Jul 2027 |
Social welfare and pensions
10 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| Most weekly payments and State Pensions | — | +€10 a week | ▲ €10 | Jan 2027 |
| Child Support Payment, under 12, weekly | €58 | €64 | ▲ 10.3% | Jan 2027 |
| Child Support Payment, 12 and over, weekly | €78 | €84 | ▲ 7.7% | Jan 2027 |
| Fuel Allowance, weekly | €38 | €43 | ▲ 13.2% | To be confirmed |
| Living Alone Increase, weekly | €22 | €25 | ▲ 13.6% | Jan 2027 |
| Living on a Specified Island Allowance, weekly | €20 | €25 | ▲ 25% | 2027 |
| Carer's Allowance income disregard, single / couple | €1,000 / €2,000 | €1,150 / €2,300 | ▲ 15% | Jul 2027 |
| Working Family Payment income limits | — | +€30 a week | ▲ €30 | Jan 2027 |
| Cost of disability payment, long-term disability recipients | — | €500 once-off | New | 2027 |
| Christmas bonus | — | 100% | Paid | Week of 7 Dec 2026 |
Housing and renting
4 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| Help to Buy maximum, first-time buyers | €30,000 | €35,000 | ▲ 16.7% | Immediately |
| Rent Tax Credit, single / couple | €1,000 / €2,000 | €1,150 / €2,300 | ▲ 15% | 2027 |
| Rent-a-room relief limit (now includes new garden homes) | €14,000 | €16,000 | ▲ 14.3% | 1 Jan 2027 |
| Derelict Property Tax, replacing the Derelict Sites Levy | — | 7% of value | New | Register 1 Sep 2027 |
Childcare, education and health
9 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| Childcare fee cap, up to senior infants, monthly | €735 | €550 | ▼ 25.2% | Sep 2027 |
| NCS universal subsidy, per hour | €2.14 | €2.50 | ▲ 16.8% | Sep 2027 |
| Income limit for maximum NCS subsidy | €34,000 | €38,500 | ▲ 13.2% | Sep 2027 |
| Childminders' tax-free earnings (3-child limit removed) | €15,000 | €20,000 | ▲ 33.3% | 2027 |
| Student contribution fee, permanent cut | €2,500 | €2,350 | ▼ 6% | 2027 |
| SUSI maintenance grants, all bands | — | +4.5% | ▲ 4.5% | Jan 2027 |
| School capitation per pupil, primary / post-primary | €274 / €406 | €342 / €446 | ▲ 10–25% | 2027 |
| Special education staff: SNAs / teachers | — | +2,339 / +1,353 | ▲ 3,692 | 2027 |
| Free Contraception Scheme, upper age | — | Up to 37 | ▲ Wider | 2027 |
Energy, motoring and excise
8 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| Carbon tax, kerosene and natural gas, per tonne | €63.50 | €48.50 | ▼ 23.6% | Life of Government |
| Carbon tax, petrol and diesel, per tonne | €71 | €78.50 | ▲ 10.6% | 1 May 2027 |
| Temporary petrol and diesel excise cuts | Ending | Extended | To 28 Feb | Phased out by 30 Jun 2027 |
| Packet of 20 cigarettes | — | +€1 | ▲ €1 | Budget night |
| Vape excise, per ml of e-liquid | 50c | 70c | ▲ 40% | 1 Jan 2027 |
| €5,000 VRT relief on electric vehicles | Ending | Extended | To 2028 | 31 Dec 2028 |
| VRT on cars over 80g/km CO₂ (bands 3 to 20) | — | +1 point | ▲ 1 pt | 1 Jan 2027 |
| Tax-free income from micro-generated electricity | €200 | €600 | ▲ 200% | 2027 |
Business, farming and national funds
7 changes
| Measure | 2026 | 2027 | Change | From |
|---|---|---|---|---|
| R&D Tax Credit first-year payment threshold | €87,500 | €105,000 | ▲ 20% | 2027 |
| Succession Farm Partnership tax credit | €5,000 | €10,000 | ▲ 100% | 1 Jan 2027 |
| Farmers' VAT flat-rate addition | 4.5% | 4.8% | ▲ 0.3 pts | 2027 |
| VAT on livestock respiratory vaccines | 23% | 9% | ▼ 14 pts | 2027 |
| Rural pubs support | — | €15m | New | 2027 |
| Future Ireland Fund | — | +€1bn | ▲ €1bn | 2027 |
| Shared Island Fund (Narrow Water Bridge, Ulster Canal) | — | €200m | ▲ €200m | 2027 |
When it hits your pocket
Most changes land with the first payslip of 2027. Swipe or scroll along the year.
Capital Gains Tax falls to 31%. Higher inheritance and gift thresholds. Help to Buy rises to €35,000. Cigarettes up €1.
Double payment Christmas bonus on qualifying welfare payments.
New tax credits and wider tax and USC bands. €14.94 minimum wage. €10 more on weekly welfare. Higher vape excise and VRT.
Reduced petrol and diesel excise ends, returning in phases until 30 June.
Carbon tax on petrol and diesel rises to €78.50 a tonne.
The new tax-advantaged investment account opens. Higher Carer's Allowance and means-test disregards.
Childcare capped at €550 a month, bigger NCS subsidies, wider college fee grants, first derelict property register.
The economy the Budget is built on
The Department of Finance's forecasts for 2027, endorsed by the Irish Fiscal Advisory Council on 25 September 2026. They assume energy prices start to ease next year as the Middle East conflict's supply shock fades.
- +3.8%
- GDP growth in 2027
- +3.0%
- Modified domestic demand, the better gauge of the Irish economy
- 3.0%
- Inflation (HICP), down from 3.3% in 2026
- 5.0%
- Unemployment, with 2.89 million people in work
- €119.1bn
- Tax revenue, up 7.8%
- €214.0bn
- Gross public debt, 56.4% of national income (GNI*)
Where 2027's €119.1 billion in tax comes from
- Income tax €41.4bn
- Corporation tax €39.1bn
- VAT €25.3bn
- Excise €6.4bn
- Other €6.9bn
Corporation tax is a third of all tax revenue, and around half of it comes from just three multinationals.
A €9.5 billion surplus, or a €13.4 billion deficit?
The headline surplus counts all corporation tax. Strip out the share the Department itself calls potentially transitory and the underlying balance is in deficit, and the gap widens to 2030.
Source: Budget 2027 Economic and Fiscal Outlook, tables 1, 2, 11 and 15. Read the full Economic and Fiscal Outlook (PDF)
The verdicts
Fair to working people.
Gone before you get it.
Puts the public finances on a worse trajectory.
The Fiscal Council's speed limit
A speed limit of 5% a year for growth in spending, net of tax changes, was set in 2021. Average growth from 2022 to 2025:
- The limit
- 5%
- What budgets planned
- 6%
- What was actually spent
- 10%
- 6 in 7 euro of corporation tax is being spent rather than saved, the Council estimates.
- €35bn+ rise in government debt by 2030, with the yearly interest bill doubling to €6.4 billion.
- Below 60% of national income: the Department projects debt falls under this mark in 2026, the first time since 2008.
Sources: Irish Fiscal Advisory Council Flash Release, 6 October 2026; Budget 2027 Economic and Fiscal Outlook. Read the Fiscal Council's full response
Read the source documents
- Budget 2027 hub and Ministers' speechesPage
- Your guide to Budget 2027Page
- Expenditure Report 2027PDF
- Economic and Fiscal OutlookPDF
- Taxation Measures and Tax Policy ChangesPDF
- Social Protection Budget 2027 measuresPage
- All Budget publications, incl. White PaperPDF
- Chartpack (chart data)PDF
- Tax Strategy Group papersPDF
- Fiscal Council Flash ReleasePage
- Database of past forecastsXLSX
- Where Your Money GoesSite
Questions readers ask
When was Budget 2027 announced?
Budget 2027 was announced in the Dáil on Tuesday 6 October 2026 by Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers.
How big is the Budget 2027 package?
The package is worth €8.65 billion: €7 billion in extra public spending and €1.65 billion in tax measures. Total government spending for 2027 is set at €125.6 billion.
Are income tax rates changing in 2027?
No. The rates stay at 20% and 40%. The 20% band rises by €2,500 to €46,500 for a single person, and the Personal, Employee and Earned Income tax credits each rise by €125 to €2,125 from 1 January 2027.
How much is social welfare going up in Budget 2027?
Most weekly social welfare payments and State Pensions rise by €10 from January 2027. A 100% Christmas bonus will be paid from the week starting 7 December 2026, and Fuel Allowance rises by €5 to €43 a week.
What is the minimum wage in 2027?
The national minimum wage rises by 79 cent to €14.94 an hour from 1 January 2027.
Where does the Budget 2027 money go?
Of the €125.6 billion total, Social Protection gets €31.0 billion, Health €29.1 billion, Education and Youth €14.4 billion and Housing, Local Government and Heritage €11.9 billion. Capital investment under the National Development Plan is €20.3 billion.
Who gains most from Budget 2027?
According to the Government's distributional analysis, the poorest tenth of households gain 3.9% in disposable income and the richest tenth 0.9%. The average gain is about 1.8%, with lone parents and single pensioners gaining most.
Will Ireland run a budget surplus in 2027?
The Department of Finance projects a general government surplus of €9.5 billion, or 2.5% of national income. Excluding corporation tax it considers potentially transitory, the underlying balance is a deficit of €13.4 billion.
How was Budget 2027 received?
The Government described it as fair to working people. The Irish Fiscal Advisory Council warned that the measures put the public finances on a worse trajectory, and opposition parties said it did not do enough for households facing high living costs.
Are the Budget 2027 measures final?
Not all of them. Tax changes are given legal effect by the Finance Bill, and details can change as it passes through the Oireachtas. Check the official documents on gov.ie for the final position.