Ireland’s Budget 2027 is on Tuesday 6 October 2026, and it will be Simon Harris’s first as Minister for Finance. Last year’s Budget had no personal income tax package, so PAYE workers will be watching closely to see whether tax bands, credits and USC move at all.
This page covers what we know so far, what Government is signalling, what last year’s Budget did for your take-home pay, and what any of it means for a tax rebate. We will update it in full on Budget day, so bookmark it and check back on 6 October, or sign up below and we’ll email you.
Contents
- When is Budget 2027?
- Budget 2027 predictions: what to expect for PAYE workers
- What we would like to see in Budget 2027
- What Budget 2026 did last year
- How Budget 2027 affects your tax rebate
- What happens on Budget day
- Budget 2027 FAQs
Key Takeaways
- Budget 2027 is on Tuesday 6 October 2026. Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will deliver it.
- The Government has confirmed an overall package of €8.5 billion: €7 billion in additional spending and €1.5 billion in tax measures.
- Unlike last year, we expect a personal income tax package. The Minister for Finance has said he wants to raise the €44,000 entry point to the 40% rate, but he has not confirmed any figures yet.
- Our tax team’s asks for Budget 2027: higher personal and PAYE credits, a Rent Tax Credit that reflects real rents, updated flat rate expenses, medical expenses relief at 40%, a simpler Mortgage Interest Tax Credit and a commuting allowance.
- Budget changes normally take effect from 1 January 2027. They do not change the tax you have already overpaid for 2022 to 2026, which you can still claim back now.
- Claims for the 2022 tax year close on 31 December 2026 under Revenue’s four-year rule, so the weeks after the Budget are the last chance to claim that year.
When is Budget 2027?
The Government will present Budget 2027 to the Dáil on Tuesday 6 October 2026. Simon Harris, Tánaiste and Minister for Finance, will deliver the tax measures. Jack Chambers, Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, will set out the spending side.
The Summer Economic Statement in July set the size of the package: €8.5 billion in total, split between €7 billion of additional public spending and €1.5 billion of tax measures. That total is final. How Government will divide the €1.5 billion between income tax, USC, credits and other reliefs is not, and we won’t know until the day.
Budget 2027 predictions: what to expect for PAYE workers
Nothing below is final until the Ministers announce it on 6 October. This section sets out what Government ministers have said publicly and the options the Department of Finance’s Tax Strategy Group put on the table in July 2026.
Income tax bands and credits
Budget 2026 left the standard rate cut-off point at €44,000 and the main tax credits unchanged. That meant anyone who got a pay rise in 2026 paid a little more tax as a result. The Minister for Finance has acknowledged this. He has said a personal tax package is a priority this year, with the aim of raising the point at which the 40% rate kicks in.
The Tax Strategy Group papers set out the options the Department has costed. These include raising the standard rate cut-off point by €1,000 to €2,000 and increasing the personal and PAYE tax credits by €50 to €100 each. A more expensive option would cut the 20% or 40% rates by one point. With €1.5 billion to cover everything, a modest increase to the band and credits is more likely than a rate cut.
Universal Social Charge (USC)
The Department has costed two USC options. One is a 0.5% cut across each rate. The other is raising the ceiling of the 2% band from €28,700 to €29,700, so that the minimum wage increase does not push full-time minimum wage workers into the 3% band. Government hasn’t confirmed either. The last Budget extended the reduced USC rate for medical card holders earning under €60,000 to the end of 2027, so that needs no change.
PRSI
One change arrives before Budget day. Employee PRSI rises from 4.2% to 4.35% on 1 October 2026. Government legislated for this separately, so it is not a Budget 2027 measure. It will still reduce take-home pay slightly from October.
Rent Tax Credit
The Rent Tax Credit is currently worth up to €1,000 for a single person and €2,000 for a jointly assessed couple. Budget 2026 extended it to the end of 2028. The Minister for Housing has said he would like to see it go up. If it does go up, the higher amount would normally apply from the 2027 tax year. It would not change what you can claim for 2025 or 2026.
Mortgage Interest Tax Credit
Budget 2026 extended the Mortgage Interest Tax Credit to cover 2025 and 2026, at a reduced rate for 2026. Government hasn’t said whether it will extend it again for 2027. If you paid more mortgage interest in 2023, 2024 or 2025 than in 2022, you can still claim the credit for those years. That stays true whatever happens in this Budget.
Childcare, child benefit and one-off payments
Government has flagged a target of capping childcare costs at €200 a month per child, but has not said how much of that it will deliver in 2027. There were no one-off cost-of-living payments in Budget 2026, and Government hasn’t confirmed any for this year. Government will announce social welfare rate increases on the day.
What we would like to see in Budget 2027
Our tax team reviews the tax position of more than 250,000 PAYE workers every year, so we see where the system leaves people short. Claire Murphy, Chartered Tax Advisor with Irish Tax Rebates, sets out the changes that would make the biggest difference to ordinary workers in Budget 2027.
Increase the tax credits everyone gets
The personal and PAYE credits are the foundation of every worker’s tax bill. A €100 increase in each would put €200 straight into your pocket. It also helps every taxpayer. A change to the standard rate band only benefits those earning enough to pay tax at the higher rate.
Increase the Rent Tax Credit
Renters had tax relief for decades before Government phased it out between 2011 and 2017. When the new Rent Tax Credit arrived in 2022, analysts calculated what it would take to match the old relief at today’s rents. Their answer was roughly €5,000 for a couple, and closer to €6,000 in Dublin. Instead, Government introduced a credit of €500, since raised to €1,000 for a single person and €2,000 for a couple. Rents have risen every year since. Renters now get a smaller share of their rent back than they did fifteen years ago. A credit worth up to €5,000 would simply restore what was taken away.
Update the flat rate expenses
Revenue has not reviewed the flat rate expense allowances for nurses, teachers, tradespeople, retail workers and dozens of other jobs in years. They no longer reflect what people actually spend on uniforms, tools and equipment. The nurses’ allowance of €733 for supplying and laundering their own uniforms has not changed since 2008. Prices have risen by more than a quarter since then.
Raise medical expenses relief
The medical card income limit for a single person is €184 a week, which is under €10,000 a year. Even the GP Visit Card stops at around €300 a week. Anyone in full-time work is over both limits. They pay full price for GP visits, prescriptions, physio, consultants and dental work. For a family that can easily run to thousands of euro a year. The only help available is tax relief at 20%, which means a €1,000 medical bill gets €200 back. Moving relief to 40% for people paying the higher rate, or a flat 40% for everyone, would help. It would recognise that workers who fund the health service are paying twice for it.
Simplify the Mortgage Interest Tax Credit
Mortgage rates are rising again, and the current credit is hard to work out because it depends on how much more interest you pay compared with 2022. A standard maximum credit of €1,250 for anyone paying more than €2,000 a year in mortgage interest would be simpler to claim. It would also reach more of the homeowners it aims to help.
Introduce a commuting allowance
Workers priced out of housing in the cities are buying in the commuter belt. Many then spend ten hours or more a week travelling to work, on top of the cost of running a car or paying for public transport. A commuting allowance targeted at those travelling furthest would recognise a cost that falls hardest on younger workers and families.
“Every one of these is a relief that already exists or existed before. None of them needs a new system, just a decision to bring the amounts up to date with what people are actually paying.” – Claire Murphy, Chartered Tax Advisor, Irish Tax Rebates
What Budget 2026 did last year
For comparison, these were the main changes for PAYE workers in Budget 2026, which apply for the 2026 tax year:
- Standard rate cut-off point unchanged at €44,000.
- USC 2% band ceiling raised to €28,700. USC is charged at 0.5% up to €12,012, 2% up to €28,700, 3% up to €70,044 and 8% above that.
- Rent Tax Credit extended to 2028 at €1,000 for a single person and €2,000 for a jointly assessed couple.
- Mortgage Interest Tax Credit extended to 2025 and 2026, at a reduced rate in 2026.
- Reduced USC rate for medical card holders earning under €60,000 extended to 2027.
- Minimum wage increased by €0.65 to €14.15 per hour.
- Core social welfare payments increased by €10 per week.
You can read our full summary on the Budget 2026 page.
How Budget 2027 affects your tax rebate
The most common question we get on Budget day is “does this mean I am owed money?” The short answer is that the Budget changes what you pay from next January onwards. It does not change what you have already overpaid, and that is where most rebates come from.
Revenue’s four-year rule lets you claim back tax for the current year and the four previous years. Right now that means 2022, 2023, 2024, 2025 and 2026. On 31 December 2026 the 2022 tax year closes for good. After that, you lose any credits or reliefs from that year that you never claimed. Typical unclaimed items include medical and dental expenses, the Rent Tax Credit, flat rate expenses for your job, tuition fees and the Mortgage Interest Tax Credit.
So whatever the Ministers announce on 6 October, the practical step for most PAYE workers is the same: check the last four years before the year-end deadline. If Budget 2027 increases a credit, we will apply the new amount to your 2027 review automatically.
What happens on Budget day
On Tuesday 6 October our tax team will go through the Budget speeches and the Revenue summary as they come out. We will then update this page with the confirmed changes to income tax, USC, PRSI and the credits that matter most to PAYE workers. For each one, we will show what it is worth in euro to a typical taxpayer. If you are already a customer, you do not need to do anything; we will pick up any changes that affect your rebate in your next review.
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Budget 2027 FAQs
1. When is Budget 2027 in Ireland?
Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will announce Budget 2027 in the Dáil on Tuesday 6 October 2026.
2. Will income tax go down in Budget 2027?
The Government has said it expects a personal income tax package this year, with the Minister for Finance aiming to raise the €44,000 entry point to the 40% rate. We won’t know the exact figures until Budget day.
3. When do Budget 2027 changes take effect?
Income tax, USC and tax credit changes in the Budget normally apply from 1 January 2027. Some measures, such as excise changes, can take effect from Budget night.
4. Will there be one-off cost-of-living payments in Budget 2027?
There were no one-off payments in Budget 2026 and the Government has not confirmed any for Budget 2027. We will update this page on 6 October once the Ministers announce the measures.
5. Does the Budget change the tax rebate I can claim for previous years?
No. Budget changes apply to future tax years. You can still claim back any tax you overpaid in 2022 to 2026 under the rules that applied in those years. The 2022 tax year closes on 31 December 2026.
6. How do I find out if I am owed a tax rebate?
Apply through the Irish Tax Rebates application form and our tax team will review the last four years for you. If no rebate is due, there is no fee.
