Capital gains
Capital Gains Tax falls to 31%: what changes, and from when
Last updated 16 October 2026
Budget 2027 cut the standard Capital Gains Tax rate from 33% to 31% for disposals from 7 October 2026. The contract date decides which rate you pay.
Budget 2027 reduced the standard rate of Capital Gains Tax (CGT) from 33% to 31%. Revenue confirmed in eBrief 142/26 that the lower rate applies to disposals made on or after 7 October 2026. Gains on development land stay at 33%.
The date that matters is the contract, not the closing
For a sale under a written contract, the time of disposal is usually the date of the contract. It is not the day the sale closes or the money arrives. If you signed on 5 October and closed in November, the old 33% rate applies. A contract that only became unconditional on or after 7 October gets 31%.
What the cut is worth
Take a house bought in 2015 for €200,000, with €5,000 of buying costs and a €30,000 extension, sold for €350,000 with €6,000 of selling costs.
| Chargeable gain | €109,000.00 |
| Less annual exemption | (€1,270.00) |
| Taxable gain | €107,730.00 |
| CGT at 33% (contract on 6 October 2026) | €35,550.90 |
| CGT at 31% (contract on or after 7 October 2026) | €33,396.30 |
The difference is €2,154.60: two percentage points of the taxable gain.
Not yet final law
The rate was approved by Budget resolution. It becomes permanent when Finance (No. 2) Bill 2026 is enacted. If the final law differs, our calculators and any PDFs bought with an account will be updated.
Work it out
Sources
- Revenue: eBrief No. 142/26: CGT standard rate reduced to 31% from 7 October 2026 (checked 25/10/2026)
- Revenue: Tax and Duty Manual Part 02-03-01A: Capital Gains Tax rate of charge (S.28) (checked 25/10/2026)
- Revenue: When and how do you pay and file CGT? (checked 25/10/2026)
- Government of Ireland: Budget in Brief 2027 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.