Ireland Announces Budget 2027 With Tax Cuts and Welfare Hikes

Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers announced Budget 2027 in the Dáil, introducing a combination of tax relief and social welfare increases. The budget includes a €1.3 billion package of personal income tax changes, which raises the standard rate tax cut-off point by €2,500 to €46,500. Other tax measures include a €125 increase to earners' tax credits, a €100 increase to the Home Carer Tax credit, and a rise in the Universal Social Charge 3% band entry threshold to €30,300.

To support low-to-middle income earners, Harris noted that an individual earning €50,000 annually would save roughly €700. He characterized these measures as support for those in the middle who "can often feel the squeeze" and earn too little "not to notice the rising cost of living."

Social welfare recipients will see a €10 weekly increase in core payments, including the State Pension, which will rise to a maximum of €309.30 per week. The government also introduced a first-time permanent disability payment of €500 for nearly 240,000 people, alongside a €5 increase in fuel allowance and a €6 weekly rise in child support. To assist small and medium-sized businesses with minimum wage hikes, the government raised the employer PRSI threshold from €552 to €600 per week.