Budget day is over for another year, and the headline is simple: if you pay tax in Ireland, you’re getting some of it back. Here’s what that means if you’re a PAYE worker with side income, a landlord, a freelancer or a sole trader.
Your income tax bill
The point where you start paying the higher 40% rate goes up from €44,000 to €46,500. If you earn above that, it’s worth up to €500 a year to you.
The Personal, PAYE and Earned Income credits each go up by €125. That helps everyone, including people who earn less than the threshold and wouldn’t gain from the band change. The 3% band of USC also now starts at €30,300 instead of €28,700.
Add it all up and the Finance Minister says someone earning €50,000 will pay over €700 less in income tax and USC. Most of this reaches you through your pay from January.
If you rent, or you’re a landlord
- Renters: the rent tax credit rises from €1,000 to €1,150 for a single person, and from €2,000 to €2,300 for a couple. It’s a credit lots of people forget to claim.
- Landlords: the rent-a-room tax-free limit goes up from €14,000 to €16,000.
If you sell shares or investments
The capital gains tax rate falls from 33% to 31%. For ETFs and funds you hold, the exit tax charged under the eight-year deemed disposal rule falls from 38% to 35%. (See ETF explainer guide).
The new investment account
This was one of the more eagerly awaited items after much speculation. The headline numbers are out: it opens on 1 July 2027, with an annual €12,000 limit, the first €50,000 tax-free and a flat 1% above that. There’s more to say about who it suits and how it works alongside what you already own, so we’ll cover it properly in a separate post as more information becomes available.
Don’t forget the return in front of you
None of this changes the return you’re filing now, which covers 2025. The online pay + file deadline is Wednesday 18 November. No part of the Budget 2027 changes your return, so there’s no reason to wait.
Check out which FastTax.ie plan is right for you: https://fasttax.ie/form-11-tax-returns/
This article is for general information only and reflects Budget 2027 announcements as at 6 October 2026. Measures announced in the Budget are subject to the Finance Bill and may change before they become law. It isn’t tax advice, so please check your own circumstances with Revenue or a qualified adviser before making decisions.
