Budget 2027
Budget 2027: the tax changes that affect you
Last updated 16 October 2026
Wider 20% band, €125 more in credits and a wider 2% USC band. Capital Gains Tax down to 31%, higher gift and inheritance thresholds and a bigger rent credit.
Budget 2027 was announced on 6 October 2026. The measures that matter most for households and small businesses:
| What | 2026 | 2027 |
|---|---|---|
| 20% band, single | €44,000 | €46,500 |
| 20% band, married one income | €53,000 | €55,500 |
| Personal, employee and earned income credits | €2,000 | €2,125 |
| Home carer credit | €1,950 | €2,050 |
| Top of the 2% USC band | €28,700 | €30,300 |
| Rent tax credit, single | €1,000 | €1,150 |
| Capital Gains Tax standard rate | 33% | 31% from 7 October 2026 |
| Exit tax on funds and life policies | 38% | 35% |
| Gift and inheritance tax: Group A threshold | €400,000 | €420,000 from 7 October 2026 |
| Rent-a-room relief | €14,000 | €16,000 |
| Help to Buy maximum | €30,000 | €35,000 |
What it means on €60,000
A single person on €60,000 takes home €44,924.77 in 2026 and €45,600.81 in 2027. That's a rise of €676.04 a year, after the PRSI increase each October.
Most of these changes take legal effect when Finance (No. 2) Bill 2026 is enacted.
Work it out
Sources
- Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
- Revenue: eBrief No. 142/26: CGT standard rate reduced to 31% from 7 October 2026 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.