Ireland Introduces Budget 2027 With Tax and Welfare Changes

The Government of Ireland introduced Budget 2027, implementing a series of income tax changes, welfare increases, and expanded supports for renters and first-time homebuyers through the Help to Buy scheme. The budget also includes higher fuel allowances and reduced childcare costs.

A flash impact analysis from the Parliamentary Budget Office indicates that the measures broadly keep pace with forecast price and wage growth. While lower-income households benefit most from social welfare measures, middle- and higher-income households gain more from the income tax adjustments. The budget also establishes a new Investment Account, though the analysis notes that capacity to use this account remains concentrated among higher-income households.

Despite these measures, the Parliamentary Budget Office warns that the cumulative effect of Budgets 2026 and 2027 leaves average household income below price- and wage-indexed benchmarks. The office projects the income-poverty rate will rise from 12.6 per cent to 15.0 per cent, driven by the withdrawal of temporary cost-of-living supports. This increase is expected to be particularly sharp among older populations.