Budget 2027 for renters, buyers and landlords

Budget 2027 raises the rent credit to €1,150, Help to Buy to €35,000, Rent-a-Room to €16,000, and brings in a Derelict Property Tax.

Budget 2027's housing measures, from the Tax Policy Changes document, take effect when Finance (No. 2) Bill 2026 is enacted. The exception is Help to Buy, which Revenue already applies from 7 October 2026.

Renters: a bigger rent credit

The rent tax credit rises from €1,000 to €1,150 a person, and from €2,000 to €2,300 for a couple taxed jointly, for 2027 and 2028. It is 20% of rent paid, up to those limits.

Buyers: Help to Buy up to €35,000

For contracts from 7 October 2026 to the end of 2029, first-time buyers of new homes can get up to €35,000. It is still capped at 10% of the price and the tax paid in four years. See Help to Buy. The Budget also gives over €1 billion to the Starter Homes programme for about 8,500 homes.

Rent-a-Room

The tax-free limit for letting rooms in your home rises from €14,000 to €16,000 from 1 January 2027. It also extends to new detached garden homes of 32 to 45 square metres installed after 27 July 2026 under the planning exemption. There is one €16,000 limit per household. See Rent-a-Room Relief.

Landlords and owners

• Capital Gains Tax on selling a rental falls from 33% to 31% for disposals from 7 October 2026
• Rental Income Relief continues for 2026 and 2027 as legislated; see the relief
• a new Derelict Property Tax of 7% a year on derelict buildings, starting with 2027 registers
• landowners get another chance to ask for land to be rezoned out of the Residential Zoned Land Tax for 2027

Social housing

The Budget in Brief sets aside €3 billion for social housing in 2027, including funding for 11,250 new social homes.

Work it out

• Rent Tax Credit →
• Help to Buy and the First Home Scheme →
• Rent-a-Room Relief →
• Landlord tax on rental income →

Sources

• Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
• Citizens Information: Budget 2027 (checked 25/10/2026)
• Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
• Revenue: Rent Tax Credit: how much can you claim? (checked 25/10/2026)
• Revenue: Help to Buy: how much can you claim? (€35,000 from 7 October 2026) (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.