Budget 2027 Ireland: What It Means for You
The Minister for Finance announced Budget 2027 on 6 October 2026. Here is a plain-English summary of the tax changes that matter most to employees, sole traders, landlords, company directors and employers in Ireland.
Employees and sole traders
The standard rate income tax band rises by €2,500, to €46,500 for a single person.
The Personal, Employee and Earned Income tax credits each rise by €125, to €2,125. The Home Carer credit rises by €100, to €2,050.
The ceiling of the 2% USC band rises by €1,600, from €28,700 to €30,300.
The income tax exemption for micro-generated electricity (for example, selling solar power back to the grid) rises from €400 to €600.
If you are self-employed, the higher Earned Income credit and wider bands feed straight into your Form 11. We can model the difference for your 2027 preliminary tax.
Landlords and property owners
The Capital Gains Tax standard rate falls from 33% to 31% for disposals on or after 7 October 2026. Development land stays at 33%.
The Rent a Room relief ceiling rises from €14,000 to €16,000.
The Rent Tax Credit rises to €1,150 for a single claimant and €2,300 for a couple.
A new 7% Derelict Property Tax is introduced. The first pay-and-file deadline is in June 2028.
Thinking of selling or restructuring a property? Speak to us before you sign anything, as timing matters for CGT.
Company directors and SMEs
Start-up company relief is extended by four years, to 31 December 2030.
The small company threshold for preliminary corporation tax rises from €200,000 to €350,000.
The R&D tax credit rules are improved.
We handle corporation tax, ROS filings and director tax planning for companies of all sizes.
Employers
The employer PRSI lower-rate weekly earnings threshold rises from €552 to €600 from 1 January 2027.
PRSI rates increase by 0.15 percentage points from 1 October 2026, with further increases planned for 2027 and 2028.
New payroll reporting options are available from 1 January 2027.
Make sure your payroll software and your cash flow are ready for the changes.
Please note: this is general information only and not personal tax advice. Some measures still depend on the Finance Bill being passed. RK & Associates is an ACCA registered firm.
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