Cara

Budget 2027 · 6 October

Budget 2027: what it means for you

Budget 2027 widens the 20% band by €2,500 and raises the main tax credits by €125 from January. Put in your pay to see your take-home under the new rules.

2027 rules from the Department of Finance’s Budget documents, updated 14:30, 6 Oct. 2026 rates checked 30 Sep 2026.
The domed front of Government Buildings on Merrion Street, Dublin, under a blue sky.
Government Buildings, Dublin, Ireland · David Kernan · CC BY-SA 4.0 · Photo credits

Budget 2027 for home buyers

Help to Buy, stamp duty, Rent a Room, mortgage interest relief, First Home and the tax bands.

What to do yourself

  1. 1
    Work out your number

    Put your pay into the calculator above: it uses the Budget 2027 rules. Most tax changes start on 1 January 2027.

  2. 2
    Check your Tax Credit Certificate in January

    Changes to bands and credits reach your pay through your employer. In January, check the new certificate in Revenue's myAccount and tell Revenue if anything is missing.

  3. 3
    Claim what isn't automatic

    The rent tax credit, medical expenses, remote working relief and some other credits have to be claimed in myAccount, for this year and up to four years back.

  4. 4
    Welfare changes are paid automatically

    Increases to weekly payments, the Fuel Allowance and Child Benefit are paid without applying, usually from January.

Or let Cara do it

  1. 1Keeps your figures (only what you typed here) until the Budget is published.
  2. 2On the night, works out your number under the new rules and emails it to you.
  3. 3Points out the credits people most often miss, like rent, medical expenses and working from home, and how to claim them.

Nothing is switched, ordered or paid for without your YES. Cara never asks for passwords or card details.

What Budget 2027 changed

From the Department of Finance's Tax Policy Changes, 6 Oct 2026. Updated 14:30, 6 Oct.

  • The 20% band up €2,500: €46,500 single, €50,500 single parent, €55,500 for a couple (up to €37,500 more for a second earner). From 1 Jan 2027.
  • Personal, employee and earned income tax credits up €125, to €2,125 each. Home carer credit up €100, to €2,050.
  • USC: the 2% band widened by €1,600, to €30,300, as the minimum wage rises to €14.94 an hour.
  • Rent tax credit up €150 to €1,150 (€300 to €2,300 for a couple), for 2027 and 2028.
  • Rent a Room limit up from €14,000 to €16,000 from 1 Jan 2027. Help to Buy up €5,000 to €35,000 from 7 Oct 2026.
  • PRSI is unchanged by the Budget; the rise to 4.5% on 1 Oct 2027 was already legislated.

Sources: Department of Finance: Budget 2027 Tax Policy Changes (6 Oct 2026) ↗ · Department of Finance: Budget 2027 Taxation Measures ↗ · Statement by Minister Harris on Budget 2027 ↗

What people ask

When is Budget 2027?

Tuesday 6 October 2026. The measures are announced in the Dáil in the afternoon; most tax changes take effect from 1 January 2027 and welfare changes from January too.

What changed in Budget 2027?

For income tax: the 20% band up €2,500 to €46,500 (€55,500 for a couple), the personal, employee and earned income credits up €125 to €2,125, and the USC 2% band widened to €30,300, all from 1 January 2027. The rent tax credit rises to €1,150 (€2,300 for a couple), Rent a Room to €16,000, and Help to Buy to €35,000 from 7 October 2026. The Department of Finance puts a single PAYE worker on €50,000 €691 a year better off.

How much tax do I pay on €50,000?

A single PAYE employee on €50,000 in 2026 pays about €7,200 income tax, €1,033 USC and €2,119 PRSI, leaving about €39,650 a year, or €3,304 a month. Use the calculator for your own figures.

What is the rent tax credit?

Renters can claim up to €1,000 a year (€2,000 for a jointly assessed couple) against the rent they pay, through Revenue's myAccount. It runs to the end of 2028 and can be claimed for past years too.

Will PRSI go up?

Yes, already legislated: the employee rate went from 4.2% to 4.35% on 1 October 2026, part of a series of small rises agreed in 2024.

Coming up

How this is worked out

Take-home pay applies each year's income tax bands and credits (personal, employee, single parent, rent), USC bands with the €13,000 exemption, and Class A employee PRSI at the year's blended rate (2026: 4.2% to September, 4.35% from October; 2027: 4.35%, then 4.5% from October) with the PRSI credit. The 2027 rules are from the Department of Finance's Budget 2027 Tax Policy Changes, and reproduce its own worked examples. It assumes PAYE employment with no other income or reliefs. It is an estimate, not tax advice.

Maintained by John McEnroe at Cara, Dublin. Last checked 14:30, 6 Oct. Spotted something wrong? admin@usecara.ie