Ireland Budget 2027: wider tax bands, higher credits and a derelict property tax

Country reference

• Country: Ireland (planned expansion country)
• Authorities: Department of Finance; Revenue Commissioners
• Topic: Budget 2027: income tax, USC, housing and welfare measures
• Key date: Announced 6 October 2026; most changes from 1 January 2027 via Finance Bill 2026
• Law: Finance Bill 2026; Taxes Consolidation Act 1997

Income tax and USC

• Standard rate band up EUR 2,500 to EUR 46,500 for a single person, with increases for couples.
• Personal, employee and earned income tax credits up EUR 125 to EUR 2,125 each.
• Income tax rates stay at 20% and 40%.
• The 2% USC band ceiling rises from EUR 28,700 to EUR 30,300.
• Rent tax credit up EUR 150 to EUR 1,150 for a single person.

Housing

• Help to Buy maximum up from EUR 30,000 to EUR 35,000, effective immediately.
• Rent-a-room relief up from EUR 14,000 to EUR 16,000 a year from 1 January 2027.
• Derelict property tax: 7% of market value, collected by Revenue, replacing the Derelict Sites Levy; a preliminary national register is due on 1 September 2027.

Employers

• Minimum wage up 79 cent to EUR 14.94 an hour from 1 January 2027.
• Employer PRSI threshold up from EUR 552 to EUR 600 a week for 2027.
• Employers will be able to choose between real-time and monthly payroll reporting, according to PwC.
• Professional services withholding tax will move from a flat 20% to personalised rates, per PwC.

What to do now

• Update payroll for the new bands, credits and USC limits from 1 January 2027.
• Budget for the higher minimum wage and PRSI threshold.
• Owners of vacant or derelict property: review the new tax exposure before the register is published.

Our take

A steady, broad package: more take-home pay, more help for housing and a stick for dereliction. For employers, the practical work is the January payroll update.