The Government has described Budget 2027 as being “fair to working people” in Ireland in a time of growing volatility.
Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers announced a raft of measures in a package totalling €8.65 billion, with €7bn committed to public spending and €1.65bn in income tax measures.
Opposition parties criticised what they said was the failure to do more for households struggling to cope with the cost of living. Sinn Féin’s Pearse Doherty said the Budget could be summed up in just five words: “Gone before you get it.”
Here are the key announcements from Budget 2027 and how they will affect you:
Income Tax, employment other credits
- Income tax Standard Rate cut off point up by €2,500 to €46,500
- Entry threshold for the USC 3% band increased by €1,600
- Home carer tax credit will increase by €100
- Employer PRSI up from €552 to €600 per week
- Increase in threshold to all Inheritance Tax groups
- Minimum wage to be increased to €14.94 per hour
Welfare
- €10 increase in weekly Social Welfare rates
- New cost of disability payment of €500 for those in receipt of long-term disability payments
- Carer’s Allowance income disregard will increase to €1,150 for a single person and €2,300 for a couple
- Weekly Fuel Allowance rate will increase by €5, while income threshold for single pensioners will rise from €534 to €641 per week
- Living Alone Allowance will increase by €3 per week
Housing and rent
- Rent-a-Room scheme tax-free threshold will rise from €14,000 to €16,000
- First-time buyer’s Help-To-Buy scheme increased by €5,000 to €35,000
- Rent Tax Credit increased by €150 to €1,159 for single people and €2,300 for couples
Childcare and family
- Childcare fees to be capped at €550 per month
- Weekly rates of Child Support Payment for children under and over-12 by €6, bringing the payments to €64 and €84 per week respectively
- The Working Family Payment weekly income thresholds to increase by €30
Investment Accounts
- New Savings and Investment Account will have a tax-free threshold of €50,000, with a flat tax of 1% on the value of the account above that threshold
- It will open on 1 July 2027 with a maximum contribution limit of €12,000 per annum and no minimum contribution
Cigarettes and not alcohol
- Packet of 20 cigarettes rises by €1, e-liquid products by 20 cent, but no hike on alcohol this time
Carbon Tax and climate
- Reduced fuel excise extended until 28 February 2027 with a gradual restoration in four phases until 30 June 2027
- *But there will be two Carbon Tax rises next year, in May and October
- Carbon Tax on kerosene and natural gas reduced to €48.50 per tonne of CO2 for lifetime of Government
- Fuel Income Support Scheme extended for five months
- Vehicle Registration Tax (VRT) relief scheme for electric vehicles extended for two years
- VRT rate up 1% on more polluting cars
- Cycle to Work scheme to be “reviewed” to increase uptake, along with TaxSaver scheme for commuters
- €1.3bn to support climate measures including retrofit grants, including boiler scrappage scheme
- €2.3bn allocation for Uisce Éireann to fund new water and wastewater infrastructure
Education and third level
- Permanent reduction in the student contribution fees of €150, increase in SUSI maintenance grants of 4.5%
- €56m increase in allocation for special education needs to fund 2,339 additional SNAs and 1,353 teachers
Health and disability
- €1.7bn allocated to health infrastructure projects, including relocation of the National Maternity Hospital
- Free contraception schemes will now be available to people aged up to 37
- 33,000 extra hours of free counselling for men, young people and the LGBTQ+ community
Transport
- €4.2bn for investment in DART+, BusConnects and Cork commuter rail projects, along with projects like Adare Bypass, Galway Ring Road
- €6bn allocated to MetroLink over the period from 2027 to 2030
Farming and rural Ireland
- €15 million announced to support rural pubs
- Wear and Tear Allowance for Farm Safety Equipment extended by three years
- Additional €31m allocated for new fertiliser scheme with fuel income support for farmers extended
Business
- Amendments to the country’s corporation tax regime
- Capital Gains Tax standard rate reduced from 33% to 31% for small businesses
- Bank Levy extended for another year with a target yield of €200 million
- Ireland Strategic Investment Fund launching €1 billion investment programme to support growth of Irish companies
Gardaí and Defence
- Funding for intake of 850 new permanent Defence Force members
- Funding to recruit up to 1,000 trainee gardaí, bringing the force to over 15,000 next year
Sport
- €4 million in funding to the League of Ireland football academies
- €1m increase in funding to the Gaelic Players Association
- Additional support for high-performance in the build up to the LA Olympics
- Almost €22m will support Ireland’s hosting of the 2027 Ryder Cup and preparations for Euro 2028
Read more:
Latest Budget 2027
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