What Budget 2027 means for your pocket
Most workers will see more money in their pay packets next year, after a Budget that aimed to sustain growth while easing pressure on households.
It was delivered against a difficult backdrop. Geopolitical uncertainty, volatile global bond markets and an ongoing energy crisis all weighed on the Government's choices, alongside the familiar pressures of housing and infrastructure.
The biggest change for most people is in income tax. The higher rate now kicks in at a higher income; the main tax credits are up and the USC second band is wider.
What does that mean in practice? A single person earning €50,000 will be €710 a year better off. A one-income married couple on €60,000 gains €949, while a two-income couple earning €100,000 between them gains €1,045.
The minimum wage also rises to €14.94 an hour.
Renters get a bigger Rent Tax Credit, worth €1,150 for single people and €2,300 for couples, and the tax-free limit for renting out a room rises to €16,000. The maximum Help to Buy refund goes up to €35,000, and a new Derelict Property Tax is on the way.
Weekly welfare and pension payments rise by €10 and Child Support Payments go up by €6. Fuel allowance also increases, and parents with children in college will see a permanent €150 cut to the student contribution fee.
For farm families, the standout measure is on succession. The Succession Farm Partnership tax credit doubles to €10,000 a year, and the three-year holding period has been removed.
There are smaller gains too: a higher flat rate addition, an extended allowance for farm safety equipment, lower VAT on livestock vaccines and a new €31 million Fertiliser Scheme.
Employers will save up to €700 a year for each employee below the new employer PRSI threshold of €600 a week however much of the saving will be lost with the recent increase in Employers PRSI rate of 0.15% at the start of the month. Smaller companies get more room on preliminary corporation tax, and the R&D tax credit and a range of start-up reliefs have been improved or extended.
Capital Gains Tax falls to 31% from 7 October, though development land stays at 33%. Capital Acquisitions Tax thresholds also rise, with Class A going up to €420,000.
Investors in funds and life assurance policies will pay less tax, and a new State savings account will let you put away up to €12,000 a year, with the first €50,000 tax-free.
Many of these measures still have to pass through the Finance Bill, so details may change. Before acting on any of them, it is worth taking advice on how they apply to your own circumstances.
