What’s changing?
More of your income is taxed at the lower rate. In Ireland, income is taxed at 20% up to a limit, and at 40% above it. For a single person, that limit goes up from €44,000 to €46,500. For single parents it goes up to €50,500, and for married couples with one income to €55,500.
Your tax credits go up. Tax credits are amounts taken straight off your tax bill. Most workers get two:
- the personal tax credit: from €2,000 to €2,125
- the employee (PAYE) tax credit: from €2,000 to €2,125
USC is a little lower. The Universal Social Charge has a 2% rate for part of your income. That part gets bigger, up to €30,300 instead of €28,700, so less of your pay is charged at 3%. That saves up to €16 a year. (What is USC?)
PRSI isn’t cut. It goes up a little each October anyway, to 4.5% from 1 October 2027. (What is PRSI?)
How much better off will I be?
For a single person working for an employer, after income tax, USC and PRSI:
| Salary | Extra take-home pay in 2027 |
|---|---|
| €30,000 | €218 a year (about €18 a month) |
| €40,000 | €206 a year (about €17 a month) |
| €50,000 | €691 a year (about €58 a month) |
| €60,000 | €676 a year (about €56 a month) |
| €75,000 | €654 a year (about €54 a month) |
| €100,000 | €616 a year (about €51 a month) |
The €40,000 and €75,000 figures match the Department of Finance’s own examples. The others come from our salary calculator. The gain is biggest from about €46,500, where all of the wider 20% band helps. Above that, it shrinks slowly as the PRSI rise takes a little more.
Here is how the €40,000 example works:
- Income tax €250 less
- 2026: €4,000 2027 (Budget plans): €3,750
- USC €16 less
- 2026: €733 2027 (Budget plans): €717
- PRSI €60 more
- 2026: €1,695 2027 (Budget plans): €1,755
You keep €206 more a year
PRSI goes up because the higher rate from October 2026 applies all year, and rises again in October 2027.
Anything else?
- Minimum wage: due to rise from €14.15 to €14.94 an hour from 1 January 2027.
- Rent tax credit: €1,150 a year for a single person, €2,300 for a couple, in 2027 and 2028. See the rent tax credit.
- Help to Buy: first-time buyers of new homes can get up to €35,000, up from €30,000. See Help to Buy explained.
- Exit tax: the tax on gains from Irish and EU funds and ETFs is due to fall from 38% to 35% from 1 January 2027. See where to invest.
See your own pay
Our salary calculator has a tax year option: choose 2027 to see your pay under the Budget 2027 plans, or 2026 for this year’s rules. The 2027 figures could still change before the Finance Act is passed. This year’s rates are on Irish tax rates 2026.