Budget 2027: What we know so far, changes to tax and social welfare expected

The total cost of Budget 2027 is expected to reach €8.5bn, and the list of changes is set to be unveiled on Tuesday. Follow along with our blog to keep up to date.

What has been confirmed:

The package includes €7bn in overall spending, but the remaining €1.5bn will be split among tax measures.

Although the exact figures will be announced on Budget Day, the Government have confirmed an increase to the national minimum wage, this is expected to rise to €14.94 per hour.

Minister Simon Harris had previously confirmed that there is an intention to increase the Childcare Services Tax Relief threshold.

This year, there is a focus on energy and energy upgrades, with Minister for Energy Darragh O'Brien confirming that the boiler scrappage scheme was brought to Cabinet. This will allow grants of up to €14,500 to replace oil boilers with heat pumps or newer technologies.

A €600 grant has also been announced to allow people to install storage batteries as part of their solar package investment.

The exact amount has not been confirmed, but there looks to be an increase in the rent tax credit. This is currently €1,000 for a single applicant, and €2,000 for joint.

There has been confirmation that excise duty cuts on petrol and diesel will continue for the rest of year, although reversal may come into effect after February 2027.

Expected measures:

These measures have not yet been formally announced, although they are widely reported to be likely or expected.

An increase to the Income Tax bands is expected, and this looks set to be an increase from €44,000 to €46,000 for an entry point to the 40% higher rate.

Some small reductions are expected in capital gains tax and inheritance tax, although details are not established yet.

There looks to be a €10 increase in the State pension and other welfare payments, as well as a €5 per week increase to the fuel allowance, or a lump sum of €300.

Widely reported is a new annual cost-of-disability payment, which is expected to be paid as a single lump sum in January. The total could be around €400.

There is an overall package expected for childcare costs, with an increase to the National Childcare Scheme expected, as well as other cuts to childcare costs potentially saving parents €1,000 per year.

When it comes to third-level fees, a discount of €750 is expected for families with more than one child in higher education.

There is an expected increase of €250 in the rent tax credit, along with further support for retrofitting older homes.

There is also expected funding for 1,000 new Gardai as part of the Justice budget.

Tune back into any of the seven Celtic Media Group titles to keep up to date with Budget 2027 announcements.