Budget 2027 delivers €8.5bn package with Tax and Welfare boosts
Budget 2027 was unveiled in the Dáil with an €8.5 billion package unveiled, €1.65bn of which is focused on tax restrictions.
A new income tax package of €1.3bn was announced, as well as a 79c rise in the minimum wage and increases to several social welfare and rental supports.
A €2m package for the expansion of the DEIS Plus scheme, as well as plans for additional SNAs and public transport for schools were also announced, along with other key changes to industries.
Here are some of the key changes announced in Budget 2027.
Tax, credits, relief and social welfare
- 40 per cent income tax rate increased from €44k to €46.5k
- Increase in the main tax credits by €125 and increase in home carer credit by €100
- Second USC band increased by €1.6k to €30.3k
- Capital Acquisitions Tax Thresholds to increase, with higher bands of €440k, €44k and €22k for Group A, B and C respectively
- Increase in the main tax credits by €125 and increase in home carer credit by €100
- Rent tax credit up to €1,150 for one person and €2.3k for a couple
- Increase in tax relief available under the childcare services scheme from €15,000 to €20,000 and removing cap on number of children that can be minded
- Rent-a-room relief to be extended to certain garden/auxiliary/modular dwellings installed after 27 July 2026 and threshold to be increased to €16k
- Maximum level of Help to Buy relief increased to €35k
- Weekly social welfare rates up by €10
- Working Family Payment weekly income thresholds to increase by €30
- Child support up by €6 per week
- Carer’s allowance up by €150 for a single person and €300 for a couple.
Housing and supports
- €654.5m will support home energy upgrades in an effort to reduce energy bills and emissions.
- €3bn for social housing delivery in 2027, including 11,250 new build social homes
- €2.2bn to support 110,000 households to benefit from social housing supports and new supply.
Childcare
- Maximum childcare fees to be reduced from €735 to €550 for young children up to senior infants
- Childcare Services Relief tax exemption to rise to €20k.
Fuel
- Excise cuts extended to June 2027, with four-phase restoration from February
- Fuel allowance up by €5 per week
Health
- Expansion of the Free Contraception Scheme to age 37
Third level
- There will be a permanent reduction to the student contribution fee of €150.
Pubs
- €15m in support of rural pubs
Workforce
- €150m over three years to support workforce development, including AI and digital skills needed for future jobs.
Sport
- €4 million in funding will be allocated to the League of Ireland football academies.
Cigarettes and vapes
- A pack of 20 cigarettes will increase by €1, with a pro-rata increase on other tobacco products.
- A 20 cent per ml tax on vapes, set to add around 40c per small disposable vape
