Key points
- Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will unveil Budget 2027 this afternoon
- Reductions in tax for middle income earners will be worth up to €1,500 for a couple with a combined income of €100,000.
- Small reductions to the existing 33 per cent rate of capital gains tax are expected
- The tax-free threshold for inheritance tax from parents to children is set to increase by €20,000 to €420,000
- Measures to cut the cost of childcare in Budget 2027 are to be targeted at families with younger children. Families with a young child attending a creche full-time could save as much as €1,000 a year per child under the plans
- An increase in the rent tax credit is understood to be on the table
- Prospect of a €250 student fee reduction is unlikely
Main reads
- Budget 2027 main points
- Budget 2027: Improved childcare supports to include after-school care
- Budget: Are we richer or poorer than in 2017? And who is saving €8,000 a year on taxes?
- John FitzGerald: The budget is now like a children’s party, with a prize for everyone
- ‘I’d say it will only cover part of a Harry Styles ticket’: Teenagers on proposed Budget 2027 culture cards
- What businesses would like to see in Budget 2027
We have some more details on the new savings scheme mooted by Minister for Finance Simon Harris over recent weeks.
The monthly limit for contributions will be €1,000, reports Cliff Taylor. This will be more than most people could afford but will limit the pace at which people can transfer existing investments.
The one remaining piece of information awaited is the total level of invesment people can hold in the scheme before the special one per cent tax on the balance kicks in.
Low income families will be supported, says public expenditure minister
Minister for Public Expenditure Jack Chambers has outlined the Government’s priorities for the budget as he arrived into Government Buildings this morning.
“We’re using our social protection system to support low-income families, particularly those facing significant cost pressures. This has been a priority in all the budgetary discussions, and I think you’ll see that reflected later on.”
Asked about prospective industrial action by public sector employees, he said:
“I’ve been absolutely clear for weeks and months that we want to reach an agreement on public sector pay. We want industrial peace, and I urge trade union representatives to return to the table and begin constructive discussions.
“Industrial action is causing significant disruption to the public, and that disruption will worsen if matters continue to escalate. I’ll be making provision for and prioritising public sector pay in the decisions we’re making, and I hope those negotiations can now move forward.”
Help to buy scheme and rental tax credit due to be increased
In terms of housing, first-time buyers will be able to access up to €35,000 towards the deposit on their first home, under the Help-to-Buy scheme. This increases the limit by €5,000.
The rent tax credit, currently amounting to €1,000 per year, is expected to be increased. A higher level of €1,200 per person was under discussion.
The tax-free rental income allowance is also expected to be extended to backyard cabins.
Modest increases to the three inheritance tax thresholds are expected.
Everything we know so far about Budget 2027 can be found here.
The main late budget change is in income tax, writes Cliff Taylor.
The Government had downplayed the potential gains here, talking of €400 a year for a single employee.
However, as Pat Leahy reported this morning, the numbers have grown. This was always likely given the size of the tax package.
The combination of a €2,500 rise in the income level at which people become liable for the higher 40 per cent tax rate and increases in the main tax credits will mean around €750 extra for a single middle earner and €1,500 for a two-income couple.
USC and PRSI changes will need to be counted in to come to a full tally.
The final budget negotiating sessions at Government Buildings on Monday came after protracted and often difficult negotiations over the weekend at which Minister for Public Expenditure Jack Chambers came under pressure to concede to spending requests from several departments.
Chambers has insisted on sticking to a ceiling of a 6 per cent spending increase across Government as a whole, which has meant many Ministers have seen increases for their departments set at considerably lower than this because of higher increases in some big-spending departments. However, supplementary estimates – ie, budget top-ups – will still be necessary this year.
You can read more about that here.
Alongside live news updates, analysis, newsletters and videos, The Irish Times will have an expert team on hand to answer your questions in our Budget Q&A on irishtimes.com.
Do you have queries around income tax bands and what the end result will mean for your net pay? Or would you like to know about your specific situation when it comes to welfare rates and pensions? If so, Dominic Coyle of The Irish Times will be joined by Beryl Power and Ruth Gilligan from PwC to answer your questions.
The form to add submissions will be added here later today.
The Government will unveil another giveaway budget, which will include reductions in tax for middle-income earners worth up to €1,500 for a couple with a combined income of €100,000.
In addition, it is expected there will be small reductions to the existing 33 per cent rate of capital gains tax.
The tax-free threshold for inheritance tax from parents to children is expected to increase by €20,000 to €420,000, though some of these details were still being hammered out late on Monday night.
The restoration of excise on petrol and diesel, due to begin on November 1st, is expected to be postponed until March 1st, while significant reductions in carbon tax on home heating oil will also be announced.
You can read our lead budget story here and everything we know so far about the budget here.
Good morning. Budget day is finally upon us. Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will announce Budget 2027 in the Dáil from around 1pm today.
Follow irishtimes.com for updates throughout the day.
