Your Budget Breakdown 2027 

The 8.6-billion-euro budget was unveiled today.  

Tánaiste and Minister of Finance, Simon Harris, said this budget was “A way forward” for hard working people.  

As such, the budget was primarily focused on tax breaks and reliefs.  

“People are working hard and doing their best. They need the Government to work with them and we get that.”  said Minister Harris, kicking off the budget review in the Dail this afternoon (October 6).  

Minister Harris prefaced his speech by talking about the “major global uncertainty” his budget was being delivered in. He continued to remark on the resilient nature of the Irish economy, saying Ireland has “one of the fastest growing economies (In the EU).” Minister Harris said he wanted to “make hard work pay” as he moved on to explaining the changes coming to the income tax rate in 2027.  

A 40% income tax rate will now kick in at €46,500, which is up from €44,000 last year. A couple earning €100,000 a year between them will pay €1,500 less and a single earner making €50,000 a year will pay over €700 less in income tax and Universal Social Charge.  

Minister Harris said he was “pleased” to announce a new investment programme which he believes will help Irish businesses grow.  

The Ireland Strategic Investment Fund (ISIF) is launching a €1 billion investment programme, aimed at creating the next generation of large Irish companies. Minister Harris revealed, “We want to create an environment in which Irish businesses remain rooted in Ireland but can scale-up and grow internationally.”  

In terms of housing, Minister of Public Expenditure Jack Chambers stated, “The shortage of housing is the single greatest challenge facing young people and families today.”  

Under the Starter Homes Programme, over one billion euro will be allocated to deliver thousands of starter homes through a range of affordability supports, alongside the Help-to-Buy scheme. The Help-to-Buy scheme tax break will increase to €35,000 and rent tax credit will increase €150. The Rent-a-Room scheme will increase the tax-free threshold a homeowner can earn from €14,000 to €16,000.   

Minister for Transport and Independent Galway East TD Sean Canney said the budget is looking at supports “for construction to keep the economy going and try and keep things going right”.   

The income threshold for free childcare will rise. Maximum childcare fees will be capped at €550 per month up until senior infants. People who care for children in their own homes can earn up to €20,000 tax free compared to last year’s €15,000.  

On tax rises, there will be a €1 increase to a pack of 20 cigarettes. E-liquid products will rise by 20 cents per millilitre.