Budget 2027 was announced on 6 October 2026. Most of the income tax changes are due to start on 1 January 2027 and are being legislated through the Finance (No. 2) Bill 2026, so details could still change before it’s enacted.
More of your income taxed at 20%
The standard rate band, the amount you can earn before paying 40%, is due to go up by €2,500:
| Your situation | 2026 | 2027 (announced) |
|---|---|---|
| Single person | €44,000 | €46,500 |
| One-parent family | €48,000 | €50,500 |
| Married couple, one income | €53,000 | €55,500 |
| Married couple, two incomes: extra band for the second earner (up to) | €35,000 | €37,500 |
Bigger tax credits
| Credit | 2026 | 2027 (announced) |
|---|---|---|
| Personal tax credit (single) | €2,000 | €2,125 |
| Personal tax credit (married or civil partners) | €4,000 | €4,250 |
| Employee (PAYE) credit | €2,000 | €2,125 |
| Earned Income Credit | €2,000 | €2,125 |
| Home Carer Tax Credit | €1,950 | €2,050 |
Universal Social Charge (USC)
The 2% band is due to run up to €30,300 (from €28,700 in 2026). This keeps full-time workers on the new €14.94 minimum wage, due from 1 January 2027, out of the 3% band. USC rates themselves don’t change.
Renters
The Rent Tax Credit is due to rise by €150, to €1,150 for a single person and €2,300 for a jointly assessed couple (announced, subject to the Finance Bill). Budget 2026 had already extended the credit to 2028 (Revenue Budget 2026 summary).
Students and parents
The student contribution is cut permanently to €2,350, and the tuition fees relief disregard is being aligned with it. According to Citizens Information, from the 2026 tax year the first €2,350 of full-time fees (€1,175 part-time) is disregarded, down from €3,000 and €1,500. That means slightly more relief for families paying fees.
Revenue’s own tuition fees page still shows €3,000 and €1,500 at the time of writing, so treat the new figures as announced, subject to the Finance Bill.
Landlords and homeowners
- Rent-a-Room Relief: the tax-free limit is due to go up from €14,000 to €16,000 from 1 January 2027.
- Help to Buy: first-time buyers can get up to €35,000 (from €30,000) for contracts from 7 October 2026 (Revenue Help to Buy).
- Mortgage Interest Tax Credit: no extension was announced, so 2026 looks like the last year, worth up to €625 (Revenue Mortgage Interest Tax Credit).
What should I do now?
Most of these changes will be applied automatically through your Tax Credit Certificate in January, but it’s worth checking it in myAccount once it’s issued, especially if you rent, care for someone at home or have a second income in the household.
The Budget doesn’t change what you’re owed for past years. 2022 claims close on 31 December 2026, and 2023 to 2025 are still open. TaxRoots can review your open years before the deadline and help make sure you’re set up properly for 2027.