Income tax cuts announced for workers as part of Budget 2027
Tánaiste and Fine Gael Minister for Finance, Simon Harris and the Fianna Fail Minister for Public Expenditure, Infrastructure, Public Service, Reform and Digitalisation, Jack Chambers. Photo: Leah Farrell/© RollingNews.ie
A personal income tax package of €1.3bn has been announced under Budget 2027.
The point at which people begin paying the higher 40% income tax rate will increase by €2,500, from €44,000 to €46,500.
Earners’ tax credits will increase by €125, while the Home Carer Tax Credit will go up by €100.
The Government has also increased the entry threshold for the USC 3% band by €1,600 to €30,300.
Minister for Finance Simon Harris said these changes mean a person earning €50,000 will be around €750 better off in 2027, while a couple with a combined income of €100,000 will save around €1,500 on their tax bill.
Announcing the measures, Minister for Finance Simon Harris said the Government wanted to help “hardworking people and their families get ahead, and not just get by”.
He said the Government needed to ensure that people in the middle were not “forced to carry too much of the burden”.
Mr Harris also highlighted the strength of the Irish labour market, with employment standing at around 2.8 million, the highest since records began.
Government forecasts expect employment to continue growing in 2027, as Mr Harris said a further 53,000 jobs will be created.
He said Ireland remains “an island of political and economic stability in a world of increasing and growing volatility”.
