Budget 2027 includes a number of announced tax measures affecting take-home pay, investment, business growth, property and indirect taxes. This EVERLEIGH ADVISORS briefing summarises the principal points identified in the supplied Budget 2027 highlights document and explains the practical areas that individuals and businesses may wish to review.
The standard-rate income tax band for a single person is shown as increasing from €44,000 to €46,500 from 1 January 2027. The Personal Tax Credit, Employee Tax Credit and Earned Income Tax Credit are each shown as increasing from €2,000 to €2,125. The Home Carer Tax Credit is shown as increasing by €100 to a maximum of €2,050.
The 2% USC band is shown as extending to €30,300 from 1 January 2027, compared with €28,700 in 2026. The source estimates a modest reduction in USC for taxpayers whose income exceeds the revised threshold.
The general CGT rate is shown as reducing from 33% to 31% for disposals made on or after 7 October 2026. The source says the 33% rate continues to apply to disposals of development land.
The Group A threshold is shown as increasing from €400,000 to €420,000, Group B from €40,000 to €44,000, and Group C from €20,000 to €22,000 for gifts and inheritances taken on or after 7 October 2026. The general CAT rate remains 33%.
The designated tax rate applying to specified Irish investment funds, equivalent offshore funds and certain life assurance products is shown as reducing from 38% to 35% from 1 January 2027. The source indicates that the eight-year deemed-disposal rules remain in place.
The Rent Tax Credit is shown as increasing to €1,150 for a single individual and €2,300 for jointly assessed taxpayers. The Rent-a-Room threshold is shown as increasing from €14,000 to €16,000 annually from 1 January 2027, with a proposed extension to certain auxiliary dwellings from 27 July 2026. The Help to Buy maximum is shown as increasing from €30,000 to €35,000 from 7 October 2026.
The standard-rate band for a single person is shown as €46,500 for 2027, up from €44,000 in 2026. The table supplied also lists €55,500 for a married couple or civil partnership with one income, €93,000 for two incomes, and €50,500 for a one-parent family. Eligibility and the detailed allocation of bands between spouses should be checked for each case.
The Personal Tax Credit, Employee Tax Credit and Earned Income Tax Credit are each shown as rising by €125, from €2,000 to €2,125. The maximum Home Carer Tax Credit is shown as increasing from €1,950 to €2,050. The Rent Tax Credit is shown as increasing from €1,000 to €1,150 for a single individual and from €2,000 to €2,300 for jointly assessed taxpayers.
The 2% USC band is shown as extending from €28,700 to €30,300 from 1 January 2027. The supplied tables also record scheduled PRSI increases from 1 October 2027, with employee PRSI shown at 4.5% and employer PRSI at 11.55% above the relevant weekly threshold. Confirm the applicable class, threshold and effective date before running payroll.
The source reports a National Minimum Wage increase to €14.94 per hour and an increase in the weekly earnings threshold for the higher employer PRSI rate from €552 to €600 from 1 January 2027. Employers should assess the combined effect on payroll costs.
The supplied highlights describe proposed increases to childcare services relief, the microgeneration exemption for electricity sold back to the grid from €400 to €600, and changes affecting third-level tuition fee relief. Qualifying Succession Farm Partnership credits are shown as increasing from €5,000 to €10,000 annually for the first five years for qualifying partnerships registered from 1 January 2027.
The supplied tables show no change to the standard corporation tax rate of 12.5%, the 10% Knowledge Development Box rate or the 25% rate applying to non-trading income and certain property transactions.
The highlights describe proposed changes intended to give companies more flexibility. The threshold used to define a small company for preliminary tax purposes is reported as increasing from €200,000 to €350,000. The document also describes a limited top-up mechanism and changes to the treatment of instalment underpayments. The final statutory wording and commencement provisions should be reviewed before changing payment procedures.
The source reports an extension of qualifying start-up company relief under section 486C of the Taxes Consolidation Act 1997 to 31 December 2030, subject to the relevant conditions.
The highlights describe a number of proposed enhancements, including increased subcontracting limits for qualifying work carried out by third parties and higher-education institutions, an increase in the first-year payment threshold from €87,500 to €105,000, and changes to how the credit is recognised for preliminary corporation tax. A further provision concerning qualifying R&D wage costs and regulated clinical trials is described as requiring further legislative work.
The Knowledge Development Box is described as being extended to 1 January 2032, with a time-limited option for certain existing claimants to elect out subject to conditions. The source also anticipates targeted amendments to interest-deductibility rules. Companies with financing arrangements or innovation-related claims should review the final provisions with their tax adviser.
The source describes proposed changes to Professional Services Withholding Tax and an option for self-employed taxpayers to opt into real-time information exchange. It also describes a choice from 1 January 2027 to report certain tax-free benefits either on or before payment or by the 14th of the following income-tax month. Confirm commencement orders and reporting rules before implementation.
The highlights describe changes to the Pillar Two global minimum-tax framework and an extension of the bank levy for a further year. These measures are more likely to affect certain large groups and financial institutions than smaller owner-managed businesses.
The general CGT rate is shown as reducing from 33% to 31% for disposals on or after 7 October 2026, while the source states that development land remains at 33%. The annual CGT exemption is listed as €1,270. Before completing a disposal, confirm the asset category, date of disposal, available reliefs and the final rules.
The CAT rate remains 33% in the supplied tables. Thresholds are shown as increasing to €420,000 for Group A, €44,000 for Group B and €22,000 for Group C, for gifts and inheritances taken on or after 7 October 2026. The relationship between disponer and beneficiary determines the applicable group, and prior benefits may affect the remaining threshold.
The annual Rent-a-Room threshold is shown as rising to €16,000 from 1 January 2027. The source describes a retrospective extension to certain designated auxiliary dwellings from 27 July 2026. Owners should check the conditions and whether their particular accommodation qualifies.
The maximum Help to Buy relief is shown as increasing from €30,000 to €35,000 from 7 October 2026. The source says the other parameters remain unchanged, including the existing calculation limits. Eligibility should be assessed against the full scheme rules.
The highlights describe a further opportunity for some landowners to seek a zoning change for land on the revised 2027 Residential Zoned Land Tax map and potentially qualify for a 2027 exemption. They also describe a new Derelict Property Tax intended to replace the Derelict Sites Levy, at a reported annual rate of 7% of self-assessed property value. The source refers to preliminary registers in September 2027 and a first pay-and-file deadline of 23 June 2028. These details require checking against the final legislation and local register arrangements.
The source describes a new Personal Investment Account intended to launch through providers on 1 July 2027. It is described as available to Irish-resident individuals aged 18 or over who hold a PPSN, with annual contributions up to €12,000 and a €50,000 tax-free threshold. A 1% annual tax is described as applying to the value above that threshold, calculated using average daily account values. The document says providers would manage tax reporting and payment, and that the existing deemed-disposal regime would not apply to eligible assets held in the account. The final rules and product eligibility need to be checked before investing.
The source describes an intention to extend the Employment Investment Incentive Scheme, Start-Up Relief for Entrepreneurs, Start-Up Capital Incentive and relief for investment in innovative enterprises, subject to the applicable EU State Aid framework. It also notes that no change was announced to scheduled Standard Fund Threshold increases, while a review of certain pension valuation factors was indicated.
The designated rate for specified funds and life assurance products is shown as reducing from 38% to 35% from 1 January 2027. The supplied highlights say the eight-year deemed-disposal rule and the 1% levy on life assurance premiums remain. Investors should compare the tax treatment of eligible investments carefully and consider liquidity, risk and time horizon as well as headline tax rates.
The highlights describe an increase in the annual cap for the Charities VAT Compensation Scheme from €10 million to €15 million for 2027. They also describe a reduction in VAT on non-oral respiratory vaccines for livestock from 23% to 9%, with the effective date to be confirmed in legislation.
The narrative section states that the Special Flat Rate Scheme for Farmers is to increase from 4.5% to 4.8% from 1 January 2027. The appendix table appears to reverse the 2026 and 2027 labels for this item, so this figure should be verified against the final official source before publication or reliance.
The source refers to a phased domestic business-to-business e-invoicing rollout expected to begin in November 2028, with further details anticipated in the relevant legislation. Businesses should monitor the final technical specifications and implementation timetable.
The highlights describe an increase of €1, inclusive of VAT, on a pack of 20 cigarettes in the most popular price category, with pro-rata increases for other tobacco products. Excise on e-liquid products is described as increasing by €0.20 per millilitre, excluding VAT, from 1 January 2027. A new 25% betting charge on commissions from totalisator or pool betting is also described, generally commencing on 1 January 2027, with an exemption for on-course pool bets.
The source describes an extension of VRT relief for electric vehicles for two years, to the end of 2028. From 1 January 2027, the Category A VRT percentage rates for bands 3 to 20 are described as increasing by one percentage point, while bands 1 and 2 remain unchanged. Buyers should check the vehicle's emissions band and the applicable relief at registration.
The highlights describe changes to the timing of scheduled carbon tax increases for certain fuels, and a reduction to €48.50 per tonne for kerosene and natural gas until 2030. Fuel-specific dates and rates differ, so households and businesses should check the measure that applies to their fuel type.
Review your 2027 tax credits, USC band, rent-related reliefs and any potential CAT or CGT transaction. Do not assume every relief applies automatically; eligibility and supporting records remain important.
Update payroll forecasts for the minimum wage, employer PRSI threshold and scheduled PRSI changes. Check the final commencement date and reporting options for reportable benefits.
Review whether your business could be affected by R&D, start-up, Knowledge Development Box, preliminary tax or interest-deductibility changes. Document eligibility and wait for final provisions where details remain incomplete.
Review disposal timing, CAT thresholds, rent-related relief and the conditions for any land or derelict-property measures. Obtain advice before relying on a proposed exemption or changing transaction timing.
Check whether your activity falls within the targeted VAT measures and begin planning for future e-invoicing requirements as final technical guidance becomes available.
This article is a general overview prepared from a third-party Budget 2027 highlights document supplied for adaptation. It is not a substitute for reviewing the final legislation, commencement orders and detailed eligibility rules. Budget announcements may be amended before enactment. EVERLEIGH ADVISORS should verify each rate, threshold and effective date against official legislative material before publishing or advising a client. No individual tax outcome should be assumed from this summary.
Download the full 242-page Bill as initiated. This is the original Bill text and may differ from subsequent amendments or the final enacted Act.