- Budget 2027 will be announced on Tuesday, 6 October 2026 by Minister for Finance Simon Harris
- The government has committed to a €1.5 billion personal tax package as part of a total budget of €8.5 billion
- Key areas under discussion include widening the income tax standard rate band, possible tax credit increases, and USC adjustments
- Employee PRSI will rise to 4.35% on 1 October 2026 and 4.50% from 1 October 2027 under the legislated roadmap
- This page will be updated with confirmed figures once Budget 2027 is announced
Budget 2027 Ireland is set to be one of the most closely watched budgets in years. With the Summer Economic Statement confirming a €1.5 billion personal tax package and the Taoiseach emphasising family supports, workers across Ireland are asking: how will Budget 2027 affect my take-home pay?
In this guide, we cover everything that has been officially confirmed or publicly discussed by government ministers, so you can plan ahead. We will update this article with confirmed figures on October 6.
When Is Budget 2027 Announced?
Budget 2027 is scheduled for Tuesday, 6 October 2026. It will be presented to the Dáil by Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers. The speech typically begins at 1pm, with detailed Finance Bill documents published on gov.ie immediately after.
Last year, our Budget 2026 analysis was one of the first to break down the changes. We will do the same on October 6 this year.
What Is the Budget 2027 Tax Package?
The Summer Economic Statement 2026 confirmed a total budget package of approximately €8.5 billion. Of this, roughly €1.5 billion has been allocated for tax-reducing measures. The remaining €7 billion is absorbed by existing cost pressures, including public sector pay deals, healthcare, and infrastructure.
Minister Harris has described the approach as "making work pay", with a clear focus on ensuring that workers who receive pay increases do not see their gains eroded by moving into higher tax brackets.
This is a tighter package than some recent budgets. For context, Budget 2025 delivered the 4% to 3% USC rate cut and the €2,000 increase to the standard rate band. Budget 2026 was more modest, with only the USC 2% band widening from €27,382 to €28,700.
What Income Tax Changes Are Being Discussed?
The standard rate cut-off point is currently €44,000 for a single person and €53,000 for a married couple with one income. The government has signalled a desire to widen this threshold, but no specific figure has been confirmed for Budget 2027.
Standard Rate Band
The most discussed potential change is a widening of the standard rate cut-off point. This is the income threshold above which you pay 40% income tax instead of 20%.
Currently, for a single PAYE employee, the first €44,000 is taxed at 20%, with everything above taxed at 40%. For a detailed breakdown of how this works, see our guide on how income tax is calculated in Ireland.
According to Oireachtas budget costings, each €1,000 increase in the standard rate band costs the Exchequer approximately €230 million. A €2,000 increase (to €46,000) would cost roughly €460 million, representing a significant portion of the €1.5 billion tax package.
Tax Credits
Increases to the main personal tax credits are also under discussion, according to analysis from Aftertax.ie. The current credits are:
| Credit | Current (2026) Amount |
|---|---|
| Personal Tax Credit | €2,000 (single) / €4,000 (married) |
| PAYE Tax Credit | €2,000 |
| Earned Income Credit | €2,000 (self-employed) |
| Rent Tax Credit | €1,000 (single) / €2,000 (couple) |
| Home Carer Credit | €1,950 |
These credits have not changed since Budget 2025. Any increase would directly reduce your income tax bill euro for euro. If you are not sure whether you are claiming all available credits, check our guide to tax credits for PAYE workers.
What About USC in Budget 2027?
USC (Universal Social Charge) adjustments are under consideration as part of the tax package, according to pre-budget analysis from Cronin & Co. The current USC bands for 2026 are:
| Band | Rate |
|---|---|
| First €12,012 | 0.5% |
| €12,013 to €28,700 | 2% |
| €28,701 to €70,044 | 3% |
| Above €70,044 | 8% |
The 3% middle rate was introduced in Budget 2025 (replacing the previous 4% rate). Budget 2026 only widened the 2% band ceiling. Any further USC changes in Budget 2027 have not yet been confirmed.
Use our USC calculator to see your current USC breakdown.
How Will PRSI Change in 2027?
Unlike income tax and USC, PRSI changes are already legislated under a multi-year roadmap and do not depend on the Budget 2027 announcement.
The employee PRSI rate is 4.20% until 30 September 2026 and rises to 4.35% from 1 October 2026. A further increase of 0.15 percentage points is scheduled from 1 October 2027, bringing the rate to 4.50%.
| Period | Class A Employee Rate | Status |
|---|---|---|
| Current (to 30 Sep 2026) | 4.20% | In Force |
| 1 Oct 2026 – 30 Sep 2027 | 4.35% | Legislated |
| From 1 Oct 2027 | 4.50% | Legislated |
| From 1 Oct 2028 | 4.70% | Legislated |
This means that even if Budget 2027 delivers income tax relief, part of the saving will be offset by higher PRSI contributions. This was the pattern in Budget 2026, where the USC band widening was largely offset by the PRSI increase.
Use our PRSI calculator for your exact PRSI contribution.
Family and Cost of Living Measures
Taoiseach Micheál Martin has stated that Budget 2027 will have a "very strong emphasis" on reducing financial pressures on families. Key areas being discussed include:
- Childcare fee reductions: Minister Harris has described further childcare reform as a "signature project" for the government.
- Working Family Payment: More targeted welfare supports, particularly for lower-income working households, are under consideration according to Irish Mirror reporting.
- Rent Tax Credit: The €1,000 Rent Tax Credit (€2,000 for couples) was extended through 2028 and is expected to continue. See our Rent Tax Credit guide for how to claim it.
How to Prepare Before Budget Day
There are several things you can do right now, before the October 6 announcement:
- Check your current tax position: Use our PAYE Tax Calculator to see exactly what you are paying in income tax, USC, and PRSI right now.
- Review your tax credits: Log into Revenue myAccount and check your Tax Credit Certificate. Make sure you are claiming everything you are entitled to, including the Rent Tax Credit and remote working relief.
- Maximise your pension contributions: If you are in the 40% income tax band, pension contributions are the most effective way to reduce your tax bill, regardless of what happens in the budget.
- Bookmark this page: We will update this article with the confirmed Budget 2027 figures on October 6, along with a live comparison tool showing your 2026 vs 2027 take-home pay.
For more strategies, read our 7 simple tax saving tips for PAYE workers.
Key Takeaways
- Budget 2027 is set for October 6, 2026, with a €1.5 billion tax package
- The government has signalled a focus on widening income tax bands and family supports
- PRSI will increase to 4.35% on 1 October 2026 and 4.50% from 1 October 2027 regardless of budget decisions
- No specific figures have been confirmed yet. All measures discussed here are based on official government statements and the Summer Economic Statement
- Use the Irish Tax Estimator calculator to understand your current position, and check back here for the full breakdown on Budget Day
This article is for informational and estimation purposes only. It does not constitute professional tax advice. Tax rules can change. Always check Revenue.ie for the latest figures or consult a qualified tax advisor for your specific situation.
Written and reviewed by an Associate Chartered Accountant (ACA) in Ireland with expertise in Irish personal taxation, payroll deductions, and Revenue.ie guidelines.
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