Budget 2027 delivers tax cuts and increased social supports for middle earners

The 2027 Irish Budget announced a series of tax reliefs and social‑welfare increases aimed at middle‑income earners.

Carbon Tax on petrol and diesel will not rise this month as planned, but two hikes are scheduled for next year, in May and October. The rate for home heating oil and gas falls to €48 per tonne from €63.50.

The standard‑rate tax cut‑off point rises by €2,500, pushing the 40 % rate to incomes of €46,500 or more. Personal, employee and earned‑income tax credits increase by €125 to €2,125, and the Home Carer Tax credit goes up by €100.

The Universal Social Charge 3 % band threshold lifts from €28,700 to €30,300, while the employer PRSI threshold rises to €600 per week, matching the minimum wage increase to €14.94.

Social Welfare benefits see a €10 weekly rise, including the Old Age Pension. A new disability payment of €500 is introduced, and the Carer’s Allowance income disregard rises to €1,150 for singles and €2,300 for couples.

Fuel‑related supports increase: the weekly Fuel Allowance goes up by €5, the pensioner income threshold to €641 per week, and the Living Alone Allowance by €3 per week.

Housing, childcare and other measures

The Help‑to‑Buy scheme for first‑time buyers gains €5,000, bringing the maximum to €35,000, and rent‑tax relief rises by €150 annually. Childcare costs are capped at €550 per month, while Child Support payments increase by €6 per week. Children’s Allowance remains unchanged.

Student support improves with a 4.5 % rise in SUSI grants and a €150 reduction in student contributions.

Rural initiatives include a €15 million package for pubs and €31 million for a new fertiliser scheme with fuel income support for farmers. The Ryder Cup receives €22 million for the 2027 event, and preparations for Euro 2028 are also funded.

A New Savings and Investment Account, launching in July 2028, will offer a €50,000 tax‑free threshold and a flat 1 % tax on amounts above that.

Source: Limerick Post. Photo: Jakub Zerdzicki / Pexels.