Budget 2027 is set to be unveiled this afternoon.
The €8.5 billion package, €1.65 billion of which will allow for tax reductions, will be announced in the Dáil from 1pm when Tánaiste Simon Harris begins his first budget speech as Minister for Finance.
But what can we expect? Here are the Budget 2027 main points that we know so far.
Income tax
The level at which workers enter the 40 per cent income tax rate is expected to be increased from the current €44,000 for a single person to €46,500.
READ MORE
Changes to tax credits and the universal social charge (USC) are also expected. The two main tax credits - the personal and PAYE one - are both expected to rise by €125.
The 2 per cent band of USC is expected to be widened to ensure that no one earning the minimum wage pays USC at more than 2 per cent.
Social welfare, disability supports and carers
A €10 increase in pension and welfare rates is understood to have been agreed.
An annual cost-of-disability payment is also expected in the region of €500.
Increases to the income disregard for the carer’s allowance, which currently stands at €1,000 for single carers, and to the child support payment, are also expected.
An increase to the living alone allowance, potentially of €5, is also possible.
And over the weekend, the Taoiseach confirmed that welfare recipients and pensioners can expect a Christmas bonus payment this year.
Housing, rent tax credit, inheritance tax
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.
Energy
Cuts in excise duty on fuel will be extended to cover the winter months.
The fuel allowance is expected to rise by €5 per week to €43 per week. Another option being considered here was a lump-sum payment.
Carbon tax relief on home heating oil is also expected.
Third level
It is expected that there will be an across-the-board €150 cut to student fees.
Childcare
Families with a young child attending a creche full-time could save as much as €1,000 a year per child through an increased subsidy under the National Childcare Scheme.
State investment scheme
Details of Simon Harris’s investment scheme are also being unveiled today. The scheme is set to offer tax-free investment options for households in stocks and shares subject to certain limits.
