The Government has announced Budget 2027, with a number of changes aimed at helping with the cost of living.
Here are some of the main points in simple terms:
Income Tax.
The amount you can earn before paying the higher 40% rate of income tax is increasing to €46,500.
The main personal and employee tax credits are also increasing by €125 each, meaning many workers should pay less income tax.
Minimum Wage
The national minimum wage is increasing by 79 cent an hour to €14.94.
Pensions & Social Welfare
The State Pension and most main weekly social welfare payments will increase by €10 per week.
The Fuel Allowance is also increasing by €5 per week to €43.
Disability Support
A new €500 cost-of-disability payment is being introduced, with the first payment expected in January 2027.
Renters
The Rent Tax Credit is increasing to €1,150 for a single renter and up to €2,300 for a jointly assessed couple.
First-Time Buyers
The maximum available under the Help-to-Buy Scheme is increasing from €30,000 to €35,000 for eligible first-time buyers purchasing or building a new home.
Childcare
There will be increased childcare support, with the Government aiming to reduce costs for families. Childcare fees are to be capped at €550 per month under the new measures, with some families potentially saving around €1,000 a year per child.
Students
Third-level student fees are expected to fall by a further €150, alongside additional supports for some families with more than one child attending college.
Petrol, Diesel & Heating
Existing reductions in excise duty on petrol and diesel are being extended through the winter and into the spring.
There will also be relief on carbon tax for home heating, with further increases on home heating oil and gas being paused.
Home Energy
More than €650 million is being provided for home energy improvements, including solar panels, battery grants and other energy-efficiency measures.
Cigarettes
A packet of 20 cigarettes will increase by €1, with additional taxation also being introduced on vaping products.
Overall
Budget 2027 contains a mixture of tax cuts, higher welfare payments and additional supports for childcare, housing and energy costs.
As always, how much you gain from the Budget will depend on your own circumstances, including your income, family situation and whether you rent, own a home or receive social welfare.
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