Ireland Tax Changes 2027: What Budget 2027 Means for Your Pay
A wider 20% band, €125 higher tax credits, a longer USC 2% band and a higher minimum wage from 1 January 2027, offset in part by the next PRSI step in October 2027.
Main change for 2027
Single PAYE worker on €60,000, Budget 2027 figures
Irish tax 2026 vs 2027
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| 20% band, single | €44,000 | <strong>€46,500</strong> | Announced, Finance Bill pending |
| 20% band, married, one income | €53,000 | €55,500 | Announced |
| 20% band, married, two incomes | Up to €88,000 | Up to €93,000 | Announced |
| 20% band, single parent | €48,000 | €50,500 | Announced |
| Income tax rates | 20% / 40% | 20% / 40% | No change |
| Personal credit, single / married | €2,000 / €4,000 | <strong>€2,125 / €4,250</strong> | Announced |
| Employee (PAYE) credit | €2,000 | <strong>€2,125</strong> | Announced |
| Earned income credit | €2,000 | €2,125 | Announced |
| Rent tax credit, single / couple | €1,000 / €2,000 | €1,150 / €2,300 | Announced |
| USC 2% band ceiling | €28,700 | <strong>€30,300</strong> | Announced |
| USC rates; exemption | 0.5% / 2% / 3% / 8%; up to €13,000 | Unchanged | No change |
| Employee PRSI (Class A) | 4.2%; 4.35% from 1 Oct 2026 | 4.35%; 4.5% from 1 Oct 2027 | Announced (PRSI roadmap) |
| Employer PRSI lower-rate threshold | €552 a week | €600 a week | Announced |
| National minimum wage | €14.15 an hour | €14.94 an hour | Announced (order pending) |
| CGT standard rate | 33% | 31% from 7 Oct 2026 (development land 33%) | Announced |
| SARP (expat relief) | 30% of income €125,000–€1m exempt | Unchanged | Adopted |
Announced: in Budget 2027, to be enacted by the Finance (No. 2) Bill 2026 or a ministerial order. The October 2027 PRSI step comes from the PRSI roadmap announced in Budget 2025, not from Budget 2027.
Take-home pay: 2026 vs 2027
| Single PAYE worker, €60,000 | 2026 | 2027 | Change |
|---|---|---|---|
| Income tax after credits | €11,200.00 | €10,450.00 | −€750.00 |
| USC | €1,332.82 | €1,316.82 | −€16.00 |
| Employee PRSI | €2,542.50 | €2,632.50 | +€90.00 |
| <strong>Take-home pay</strong> | <strong>€44,924.68</strong> | <strong>€45,600.68</strong> | <strong>+€676.00</strong> |
Single employee, no children, personal and PAYE credits only, same gross in both years. PRSI is averaged over the October rate steps: 4.2375% in 2026, 4.3875% in 2027. 2027 uses Budget 2027 figures, which are not yet enacted. Renters can add up to €150 from the higher rent credit.
Employees and renters
More income at 20%, bigger credits
The extra €2,500 of band is taxed at 20% instead of 40%, worth €500 a year to a single person earning above €46,500. The two €125 credit increases add €250 for a single PAYE worker.
USC (Universal Social Charge): from January the 2% band runs to €30,300, saving up to €16 a year.
PRSI (social insurance) rose to 4.35% on 1 October 2026; the next step, to 4.5%, is planned for 1 October 2027.
Rent tax credit: €1,150 for a single renter and €2,300 for a couple.
National minimum wage: €14.94 an hour from 1 January 2027, up 79c.
Self-employed
Same gains as employees
The earned income credit rises to €2,125, matching the PAYE credit, and the wider €46,500 band applies to trading profits too. The USC surcharge of 11% on non-PAYE income above €100,000 does not change. Self-employed PRSI (Class S) is expected to follow the same roadmap as employees; confirm the rate when Revenue publishes the 2027 figures.
Expats and relocants
What matters if you move to Ireland
SARP (Special Assignee Relief Programme) continues unchanged: 30% of income between €125,000 and €1,000,000 is exempt for assignees arriving up to 2030, with a minimum base salary of €125,000.
Most newcomers rent, so the rent tax credit rising to €1,150 (single) is a direct gain.
CGT falls to 31% for disposals from 7 October 2026, which helps anyone selling shares or other investments.
2026 income still uses 2026 rules
FAQ
What changes in Irish tax in 2027?
Under Budget 2027, the single 20% band rises from €44,000 to €46,500, the personal, PAYE and earned income credits rise by €125 to €2,125, and the USC 2% band is extended to €30,300, all from 1 January 2027. The measures still need the Finance (No. 2) Bill 2026.
How much more will I take home in 2027?
A single PAYE worker on €60,000 keeps about €676 more a year (around €13 a week): €750 less income tax, €16 less USC and €90 more PRSI. Renters can gain up to €150 more from the rent credit.
Is the PRSI increase to 4.5% confirmed?
Employee PRSI rose to 4.35% on 1 October 2026. The step to 4.5% from 1 October 2027 is part of the PRSI roadmap announced in Budget 2025, not a Budget 2027 measure. Treat it as announced until the legislation is confirmed.
Does SARP change in 2027?
No. SARP still exempts 30% of income between €125,000 and €1,000,000 for assignees arriving up to 2030, with a minimum base salary of €125,000.
