Tax · Ireland

Budget 2027: what changes for 10 typical Irish households

Budget 2027 widened the 20% income tax band by €2,500, raised the main tax credits by €125, widened the 2% USC band by €1,600 and lifted the rent tax credit. PRSI keeps rising on its own schedule. We ran ten common Irish households through the same official figures to see what each one actually keeps.

Take-home pay, 2026 against 2027

"Change" columns show money kept: positive means you pay less. Gross pay is held the same in both years. Couples are jointly assessed; renters claim the full rent tax credit.

What the numbers show

• The band increase is the big item, but only for higher-rate taxpayers. A single person on €60,000 or €100,000 saves the full €750 in income tax: €2,500 moved from 40% to 20% is €500, plus €250 from the two credit increases. On €30,000 the saving is €250, the credits only.
• Two-income couples gain most. Their combined band rises by €5,000 (€2,500 each, with the second earner's extra band capped at €37,500), so a couple on €70,000 and €50,000 saves €1,500 in income tax.
• Renters get an extra €150 (single) or €300 (couple) from the higher rent tax credit, which is why a couple renting on €80,000 between them gains more than many single earners.
• USC barely moves: the 2% band now ends at €30,300 instead of €28,700, worth at most €16 a person.
• PRSI takes some back. Employee PRSI rose to 4.35% in October 2026 and is due to rise to 4.5% in October 2027. On €60,000 that is €90 more over the year, which is not a Budget measure but reduces what the Budget gives.

How we worked it out

Each row is computed from the tested module behind our Budget 2027 calculator, which reproduces the published examples (about €750 more for a single higher-rate earner, €1,500 for a two-income couple). It applies the 2026 bands, credits and USC from Revenue, the Budget 2027 changes from the government's guide, and Class A PRSI by week, including the tapered credit. It does not include pay rises, other reliefs, Child Benefit (unchanged at €140 a month) or welfare payments (up €10 a week from January 2027). Journalists and bloggers may use this table with a link to this page.

Frequently asked questions

How much better off will I be after Budget 2027?
Across ten typical households, take-home pay rises by between €206 and €1,352 a year in 2027, before any pay rise. The gain comes from the wider 20% band (+€2,500), €125 higher tax credits and the wider 2% USC band, minus the PRSI increase.

Why do some households gain much less?
The €2,500 wider band only helps people who pay tax at 40%. Someone earning under €44,000 gains only from the €125 credit increases and a few euro of USC, and the PRSI rise takes part of that back.

Does PRSI go up in 2027?
Yes. Employee PRSI is 4.35% from 1 October 2026 and is due to rise to 4.5% from 1 October 2027 under the PRSI roadmap set in 2024. It is not a Budget 2027 measure, but it reduces what the Budget gives back.

Related

• Budget 2027 calculator
• Where should my money go? Ireland, after tax
• Help to Buy calculator (€35,000 from 7 October 2026)
• Irish investment tax after Budget 2027

Sources

• gov.ie: Your guide to Budget 2027 (band +€2,500, credits +€125, home carer +€100, USC 2% band to €30,300, rent credit €1,150 / €2,300)
• Revenue: tax rates, bands and reliefs (2026 bands and credits)
• Revenue: standard rates and thresholds of USC (2026 USC bands)
• Department of Social Protection: PRSI Class A rates (4.2% to 30 September 2026, 4.35% from 1 October 2026)

Figures read on the linked pages on 3 November 2026. The 4.5% PRSI rate from 1 October 2027 follows the PRSI roadmap (Social Welfare (Miscellaneous Provisions) Act 2024). General information, not tax advice.