Tax
Income tax bands
- The standard rate income tax band (the amount you can earn before you start to pay the higher rate of tax) will be increased by €2,500 to €46,500 for a single person, with proportionate increases for married couples and civil partners.
Tax credits
The following tax credits will increase by €125 to €2,125:
- Personal Tax Credit
- Employee Tax Credit
- Earned Income Tax Credit
The Home Carer Tax Credit will increase by €100 to €2,050.
The Rent Tax Credit will increase by €150 to €1,150 for a single person.
Universal Social Charge (USC)
- The 2% rate band limit for USC will increase to €30,300 (from €28,700).
Capital Acquisitions Tax
The group thresholds for Capital Acquisitions Tax (CAT) will increase:
- Group A to €420,000 (from €400,000)
- Group B to €44,000 (from €40,000)
- Group C to €22,000 (from €20,000)
The increased Group thresholds apply to gifts and inheritances taken on or after 7 October 2026.
Capital Gains Tax
- The rate of Capital Gains Tax will be reduced from 33% to 31% for disposals on or after 7 October 2026.
Fuel taxes
- The temporary reductions in petrol and diesel excise rates have been extended to 28 February 2027. The excise rates will then gradually increase to their previous levels by 30 June 2027.
- Carbon tax on kerosene and natural gas will be reduced to €48.50 (from €63.50) per tonne of carbon dioxide for the duration of this government. The rate for petrol and diesel will remain at €71 per tonne until 1 May 2027, when it will increase to €78.50 per tonne.
Investment account
- A new investment account will be available from 1 July 2027. It will have a tax-free threshold of €50,000 with a 1% tax on amounts above that. A maximum of €12,000 can be contributed per year, with no minimum.
