Budget 2027
Budget 2027: the new gift and inheritance tax thresholds
Last updated 16 October 2026
Budget 2027 raised the gift and inheritance tax thresholds to €420,000, €44,000 and €22,000 from 7 October 2026.
Budget 2027, presented on 6 October 2026, raised all three Capital Acquisitions Tax thresholds. The new amounts apply to gifts and inheritances taken on or after 7 October 2026. They are part of Finance (No. 2) Bill 2026 and become law when it is enacted. The rate stays at 33%.
Old and new thresholds
| Group | Who it covers | To 6 October 2026 | From 7 October 2026 | Increase |
|---|---|---|---|---|
| A | a child inheriting from or getting a gift from a parent | €400,000 | €420,000 | €20,000 |
| B | brothers, sisters, nieces, nephews, grandchildren, grandparents | €40,000 | €44,000 | €4,000 |
| C | anyone else | €20,000 | €22,000 | €2,000 |
Which date counts
For an inheritance, the date that decides the threshold is usually the date of death, not when the estate is distributed. For a gift, it is the date of the gift. Someone whose parent died on 6 October 2026 uses the old Group A threshold even if probate takes a year. The valuation date, often later, only sets when you pay and file.
What the change is worth
A child inherits €500,000 from a parent, with no earlier gifts or inheritances from a parent.
| Inheritance tax if the parent died on 6 October 2026 | €33,000.00 |
| Inheritance tax if the parent died on 7 October 2026 | €26,400.00 |
| Saving | €6,600.00 |
The saving is 33% of the increase in the threshold. So it is the same for anyone whose inheritance uses the full increase: in Group A, €6,600.
Earlier benefits
The thresholds are lifetime limits per group. Gifts and inheritances received since 5 December 1991 count against them. A higher threshold leaves more room for future benefits for everyone, including people who used part of the old threshold. Only the threshold in force at the date of each new benefit is used.
Unchanged
- the 33% rate
- the €3,000 small gift exemption
- Agricultural and Business Relief, and the dwelling house exemption
- the Form IT38 filing rule: file once you pass 80% of your threshold
Work it out
Sources
- Revenue: CAT group thresholds (€420,000 / €44,000 / €22,000 from 7 October 2026) (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
- Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
- Revenue: CAT aggregation rules (prior benefits since 5 December 1991) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.