Irish Government releases Budget 2027 with income tax changes

The Irish Government announced the details of Budget 2027 on Tuesday, introducing measures across tax, housing, childcare, health, welfare, and transport. As the Irish Examiner and The Journal reported, the government has raised the entry point for the higher rate of income tax. The Irish Examiner specified that the higher rate will now apply from €46,500. [1][4]

According to the Irish Examiner, main personal, employee, and earned income tax credits are increasing by €125 each. The government estimates that these tax adjustments will leave an individual earning €50,000 annually around €700 better off, while a working couple earning a combined €100,000 will gain approximately €1,500 each year. The national minimum wage is also rising by 79 cents per hour. [1]

The Journal reported that the budget includes an increase in the Rent Tax Credit, a carbon tax freeze, and a price increase on cigarettes. In addition, the Irish Times reported that the package offers €15 million in support for pubs, alongside price increases for smokers and vapers. [4][8]

Reactions to the measures have been mixed. The Journal noted that opposition parties expressed dissatisfaction with the package. According to the Irish Times, tax experts viewed the budget as easing pressure rather than transforming family finances, while a healthcare assistant under the €44,000 income threshold expressed disappointment over the lack of substantial relief on fuel prices. [2][3][4]