It's Budget day
Budget 2027 is announced in the Dáil this afternoon, with Tánaiste and Minister for Finance Simon Harris on his feet from 1pm. It's his first Budget since taking over the finance brief, so there's plenty of interest in what he'll do.
The good news is that most of the big decisions have been well flagged in advance, so we already have a fair idea of what's coming. So we've put together a quick look at what to expect, and what it could mean for you, from all of us here at Gilheany & co .
An €8.5 billion package
The Government has €8.5 billion to work with this year, a little less than the €9.4 billion in last year's Budget. Most of that goes on extra public spending, with this morning's reports putting the tax cuts at around €1.65 billion.
After last year's Budget left income tax bands and credits untouched, this is the one workers have been waiting for. Ministers have been clear it will be a modest package, though, so think a few hundred euro a year for most people rather than anything dramatic.
What we're expecting
Nothing is confirmed until the Minister stands up, but here's what's been widely signalled.
- Your pay packet. The point where you start paying 40% tax is tipped to rise from €44,000 to around €46,500 for a single person. The personal and PAYE tax credits could each go up by €125, and the 2% USC band should be stretched so that nobody on the minimum wage pays more than 2%.
- Your home. First-time buyers are expected to get up to €35,000 through Help to Buy, €5,000 more than now. Renters should see the rent tax credit go up from €1,000, possibly to €1,200 a person.
- Your family. Parents with a child in full-time creche could save up to €1,000 a year through a bigger childcare subsidy. Student fees are expected to come down by €150.
- Pensions and welfare. A €10 a week increase to the State pension and main welfare payments looks agreed, along with a Christmas bonus this year. Fuel Allowance is expected to rise by €5 to €43 a week.
- Your heating and fuel. Fuel excise cuts are set to run through the winter, with carbon tax relief on home heating oil also expected.
- Savings and inheritance. A new tax-free investment account for shares and funds is due to be unveiled, and the three inheritance tax thresholds should get a modest lift.
- Your business. If you employ staff, the minimum wage is expected to rise by 79 cent to €14.94 an hour from January. We'll also be keeping a close eye on anything that eases the cost of doing business.
We'll take it from here
Once the speeches are over, we'll go through the detail and update this site with our full Budget 2027 summary, so check back later today. Most income tax, USC and tax credit changes kick in from 1 January, which gives you a bit of time to plan.
In the meantime, if you're wondering how any of this might affect you, your family or your business, just give us a shout. The team at Gilheany & co is always happy to talk it through.
