Budget 2027 date
Budget 2027 will be presented to Dail Eireann on Tuesday 6 October 2026 by Tanaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers. It will cover the tax year 2027 and any changes generally take effect from 1 January 2027, with the exception of some measures announced mid-year.
What is already confirmed for Budget 2027
PRSI increase - already legislated
This one is not a budget decision - it was legislated years ago as part of a phased programme to fund the State pension and the new Auto-Enrolment scheme. Employee PRSI will increase by 0.15 percentage points from 1 October 2026, from 4.2% to 4.35%. That is already happening regardless of what else is in the budget. On a salary of EUR50,000 this costs you around EUR75 per year extra.
The full schedule of increases is: 4.2% (Jan-Sep 2026), 4.35% (Oct-Dec 2026), 4.5% (from Oct 2027), 4.7% (from Oct 2028).
EUR8.5 billion package confirmed
The Government has agreed a total budget package of EUR8.5 billion, with EUR1.5 billion allocated to tax measures. That is a meaningful sum for tax cuts - the question is how it gets distributed between income tax, USC, credits and other areas.
What is expected
Standard rate band increase - most likely
This is the single most expected change. The standard rate band is the point at which your income moves from 20% to 40% tax. For a single person it currently sits at EUR44,000. Simon Harris said at the National Economic Dialogue in June that widening this threshold is "a practical way of ensuring wage growth translates into higher take-home pay".
How much could it move? Each EUR1,000 increase costs approximately EUR230 million according to Revenue figures. With EUR1.5 billion available for tax measures, a EUR2,000 to EUR3,000 increase is realistic. That would save a single person earning above EUR46,000 roughly EUR400 to EUR600 per year.
People earning below the current threshold of EUR44,000 would not benefit from a band increase - they need USC cuts or credit increases instead.
USC adjustments - likely
In Budget 2025 there were significant USC cuts which gave middle earners EUR800 to EUR1,000. Budget 2026 made only a minor USC adjustment (widening the 2% band ceiling from EUR27,382 to EUR28,700, saving about EUR13 per year). Pressure is building to deliver more for lower and middle earners who do not earn enough to benefit from a standard rate band extension.
The most likely USC changes are a further widening of the 2% band or a reduction in the 3% rate.
Tax credits - possible
The Personal Tax Credit and PAYE Tax Credit have both been EUR2,000 since Budget 2025. These were last increased in Budget 2025 by EUR125 each. A similar increase of EUR100 to EUR200 each would benefit all taxpayers regardless of income level.
Childcare - expected
Taoiseach Micheal Martin flagged childcare as a priority, signalling further cuts to fees and improvements to worker pay. This is a spending measure rather than a tax change, so it does not directly affect take-home pay, but reduced childcare costs effectively work the same way.
What it means in euro terms
Based on what has been signalled, here are rough estimates for different salary levels assuming a EUR2,000 standard rate band increase plus minor USC adjustments:
| Salary | Likely annual gain | Monthly gain |
|---|---|---|
| EUR30,000 | EUR100 - EUR200 | EUR8 - EUR17 |
| EUR40,000 | EUR150 - EUR300 | EUR13 - EUR25 |
| EUR50,000 | EUR350 - EUR600 | EUR29 - EUR50 |
| EUR60,000 | EUR400 - EUR650 | EUR33 - EUR54 |
| EUR80,000+ | EUR400 - EUR700 | EUR33 - EUR58 |
Estimates for a single PAYE employee. Actual figures depend on the final budget measures announced on 6 October 2026. These are illustrative only and not financial advice.
What will not change
Tax rates are not expected to change. The 20% and 40% rates have been in place for years and there is no serious political pressure to adjust them. Capital Gains Tax at 33% is also expected to remain unchanged. Corporation tax at 12.5% is not up for discussion.
When will we know for sure
The full budget package will be announced on the afternoon of 6 October 2026. We will update this guide and our Budget calculator on the day with the actual figures so you can see exactly what your take-home pay will be in 2027.
See your current Budget 2026 take-home pay
Use our calculator to see your exact 2025 vs 2026 breakdown, line by line. We will update it with Budget 2027 figures on 6 October.
Quick questions
Will I pay less tax in 2027?
Most people earning above EUR44,000 will pay less income tax if the standard rate band is widened as expected. People earning below EUR44,000 will only benefit if USC is cut or credits are increased. The PRSI increase from October 2026 will offset some gains for everyone.
When do Budget 2027 changes take effect?
Most income tax, USC and credit changes take effect from 1 January 2027. The PRSI increase to 4.35% already takes effect from 1 October 2026 - that is separate from the budget and already legislated.
Does my employer need to do anything?
No. Revenue automatically updates your tax credits and rate band through your Revenue Payroll Notification (RPN). Your employer's payroll system will apply the new rates from January 2027 without you needing to do anything.
Will the Rent Tax Credit change?
The Rent Tax Credit of EUR1,000 per person (EUR2,000 for jointly assessed couples) has been extended to 2028 already. It may be increased in Budget 2027 but no commitment has been made. It still needs to be claimed by you via Revenue myAccount each year.
What about the minimum wage?
The National Minimum Wage is currently EUR14.15 per hour (from January 2026). A further increase for 2027 is likely based on recommendations from the Low Pay Commission, but the amount has not yet been announced.